Zheng Quan Ri Bao Zhi Sheng·2025-06-26 07:59Core Viewpoint - The approval of the Industrial and Commercial Bank of China (ICBC) to acquire Chongqing Bishan Rural Bank and establish a new branch is aimed at enhancing financial stability and risk management in rural banking [1][2]. Group 1: Company Actions - ICBC has initiated the establishment of two rural banks, including Chongqing Bishan Rural Bank and Zhejiang Pinghu Rural Bank, with full ownership of the former and 60% ownership of the latter [2]. - The acquisition allows ICBC to absorb the assets, liabilities, business, and employees of Chongqing Bishan Rural Bank after asset verification [1]. Group 2: Industry Trends - The trend of merging rural banks into branches, referred to as "village to branch" (村改支), is becoming prevalent, with many major banks absorbing their rural banks to streamline operations and enhance risk management [3]. - The overall development of rural banks in China is showing a trend of reduction in numbers, with a focus on consolidating institutions to improve financial stability [3]. Group 3: Financial Stability and Risk Management - Experts suggest that merging rural banks into larger institutions like ICBC can strengthen financial regulation and risk prevention, as larger banks have more robust internal controls and risk management systems [2]. - The integration of rural banks into larger banking structures is expected to enhance credit availability for agriculture and small enterprises, thereby supporting rural economic development [3].