Consolidation of China’s village banks has accelerated. On May 29 a Mengzi
village bank affiliated with the Shanghai Rural Commercial Bank absorbed four
sister Shanghai-affiliated village banks in Kaiyuan, Gejiu, Jianshui and Mile.
On May 28 four Fumin village banks in Shenyang (Xinmin, Shenbei, Faku,
Liaozhong) were approved for dissolution and cancellation of their financial
licences; all business, claims, liabilities and staff will be transferred to
Shengjing Bank and converted into branches. The National Administration of
Financial Regulation’s institution-exit list shows nearly 100 village banks
completed deregistration through end-May. Zhaolian chief economist Dong Ximiao
said this is a policy-guided, market-driven structural consolidation to reduce
scale, resolve risks and optimise the rural financial footprint, not a wave of
failures.
