Do you remember the first coin in your piggy bank as a child? Maybe it was deposited in the small village bank around the corner. However, in this hot summer, the banks we are familiar with are quietly undergoing earth-shaking changes. According to the latest statistics, in the first half of 2024, 51 banks will be merged or dissolved! This number has surpassed the 77 in all of last year. What is the reason for so many banks to "disappear", and how will this affect your life and mine? Let's unveil the mystery of this banking reshuffle.
Disappearing village and township banks: 5 banks officially announced their dissolution
On a hot summer day, Xiao Li, a fisherman from Zhoushan, Zhejiang Province, is preparing to go to the village bank to deposit a sum of fish income. However, when he came to the door of the bank, he found that the door was closed and a notice saying "The Bank has been dissolved" was posted on the door. Xiao Li was dumbfounded, "What can I do about this?" Will I get my money back?"
Xiao Li's situation is not unique. According to the information on the official website of the State Administration of Financial Regulation, in the first half of this year, five village and township banks have officially announced their dissolution:
- Zhejiang Zhoushan Putuo Chouzhou Village Bank
- Zhejiang Daishan Chouzhou Village Bank
- Chongqing Jiangbei Hengfeng Village Bank
- Baotou Donghe Jingu Village Bank
- Zhenglanqi Huize Village Bank
Why did these banks "disappear"? Professor Wang, a financial expert, explained: "The dissolution of these banks is mainly due to the merger of other banks. Although the village bank as an independent legal person has disappeared, its business and customer resources will be integrated into a larger bank, and the interests of depositors will be safeguarded. "
Big fish eat small fish: 46 banks were absorbed and merged
In addition to being dissolved directly, more banks have chosen to "huddle together for warmth". According to statistics, in the first half of this year, a total of 46 banking institutions were absorbed and merged by other banks. Among these merger cases, there are some high-profile big moves:
- On April 9, Xinjiang Bank absorbed and merged with Korla Bank
- On April 30, Shaanxi Qinnong Rural Commercial Bank absorbed two rural commercial banks in one go
- On June 20, Liaoning Rural Commercial Bank set a record by merging 36 rural small and medium-sized banking institutions at one time!
"It's like survival of the fittest in the law of the forest." Li Ming (pseudonym), a banking analyst, said, "Smaller, inefficient banks are being consolidated. This will not only improve the overall operational efficiency of the banking industry, but also help prevent financial risks. "
New forces: 4 rural commercial banks rose against the trend
The banking industry is not just about disappearing and merging. In this reshuffle, we have also seen the rise of new forces. Since the beginning of this year, 4 newly established banks have been approved for operation, of which 3 are provincial-level rural commercial banks:
- Sichuan Rural Commercial United Bank (opened on January 29)
- Guangxi Rural Commercial United Bank (opened on February 6)
- Hainan Rural Commercial Bank (approved for opening on April 26)
- Shanxi Zhongyang Rural Commercial Bank (approved for opening on June 18)
The establishment of these new banks marks another important progress in the reform of the mainland's rural financial system. "The establishment of provincial-level rural commercial banks is conducive to the integration of financial resources in the region and the improvement of the efficiency and quality of rural financial services." Zhang San (pseudonym), a professor of finance at Chinese University, said.
Demystifying the banking reshuffle: why now?
Why, then, did the banking sector embark on such a massive restructuring wave in the first half of this year? According to expert analysis, this is closely related to the following factors:
- Deepening supply-side reform: The state is promoting supply-side structural reform in the banking industry, eliminating outdated production capacity and improving the overall efficiency of the industry.
- Guarding against financial risks: In recent years, some small and medium-sized banks have become more risky. Through mergers and acquisitions, potential risks can be effectively prevented and resolved.
- Digital transformation pressure: The rise of internet finance has brought great challenges to traditional banks. Small banks could not afford the high cost of technology and had to be consolidated.
- Regulatory policy guidance: On May 23, the State Administration of Financial Supervision made it clear that it would "accelerate the merger and reorganization of small and medium-sized rural banks and reduce the number and level of small and medium-sized banking institutions in rural areas".
- Optimal allocation of resources: Through integration, the allocation of financial resources can be optimized and the ability to serve the real economy can be improved.
What does this reshuffle mean for you and me?
The changes in the banking industry may seem far away, but in fact they are closely related to everyone's lives. So, what impact will this reshuffle have on ordinary people?
- Possible reduction of service outlets: After the merger of banks, some duplicate branches may be closed to improve efficiency. This may cause inconvenience to residents in some remote areas.
- Richer financial products: Large banks are often able to offer a wider range of financial products and services to meet the needs of different customers.
- Deposit security is more secure: Large banks are more resilient to risks, and depositors' funds are more secure.
- It may be easier to get a loan: Larger banks tend to be more well-funded and may ease lending conditions.
- Service efficiency improvement: Through integration and technology upgrades, the bank's service efficiency is expected to improve.
- Improvement of rural financial services: The establishment of provincial-level rural commercial banks is expected to improve the quality of financial services in rural areas.
Looking Ahead: What's Next for Banking Reform?
Looking ahead, the banking industry will continue to undergo transformation. Experts predict that the following trends may emerge in the future:
- Mergers and acquisitions accelerate: It is expected that the pace of mergers and acquisitions in the banking sector will further accelerate in the second half of this year and next year.
- Technology empowerment: Banks will pay more attention to technological innovation and use big data, artificial intelligence and other technologies to improve service capabilities.
- Differentiated competition: The competition between banks will pay more attention to characteristic and differentiated development.
- Serving the real economy: The banking industry will pay more attention to serving the real economy and supporting the country's key development strategies.
- Upgraded risk management and control: With the consolidation of the industry, risk management will become more refined and intelligent.
As the old saying goes: "Those who do not seek the overall situation are not enough to seek a domain." This magnificent reform of the banking industry is not only related to financial security, but also affects all aspects of the country's economy. As ordinary people, we are both witnesses and beneficiaries of this change. While enjoying better financial services, we should maintain rational judgment, enhance risk awareness, and jointly safeguard the overall situation of financial stability.
So, what do you think about this banking reshuffle? Feel free to leave a message in the comment area and share your views!
