下好风险化解先手棋

Core Viewpoint - The pace of mergers and restructuring among small and medium-sized banks is accelerating, with regulatory approval granted for 26 banks to acquire or dissolve their rural banks as of May 18 this year [1] Group 1: Regulatory Focus - As of the end of 2024, there are 4,295 banking institutions in China, a decrease of 195 from 4,490 at the end of 2023, with rural commercial banks, rural credit cooperatives, and village banks seeing reductions of 44, 41, and 98 respectively [1] - The focus of financial regulation has shifted towards risk management and transformation of local small and medium-sized financial institutions, particularly targeting high-risk urban commercial banks and smaller, less competitive rural banks [1] Group 2: Strategies for Risk Management - The strategy for addressing high-risk small and medium-sized financial institutions includes a "classified treatment" approach, where village banks are primarily merged with their main initiating banks, and rural credit cooperatives are integrated into provincial rural commercial banks [2] - In 2022 alone, over a hundred village banks were merged or restructured by larger banks, indicating a trend of "big fish eating small fish" to enhance resource complementarity and overall development [2] Group 3: Capital Supplementation and Internal Management - To enhance risk resistance, local financial institutions are actively seeking to supplement their capital through various channels, as the non-performing loan ratio of small banks is significantly higher than the industry average [2] - Newly established small banks post-merger must improve their comprehensive risk management systems and optimize their credit structures while conducting dynamic monitoring and early warning of risks [3] - The restructuring of the banking sector is seen as a necessary response to the transition towards high-quality economic development, with risk resolution in small banks becoming a strategic priority [3]