Zhong Guo Zheng Quan Bao·2025-06-29 23:05Core Viewpoint - Qingdao Rural Commercial Bank has received shareholder approval for the absorption and merger of three village banks, which will be converted into branch institutions, indicating a strategic move to enhance financial service capabilities and risk management [2][3][6]. Summary by Relevant Sections Mergers and Acquisitions - Qingdao Rural Commercial Bank's shareholders approved the merger of Qingdao Pingdu Huimin Village Bank, Shandong Yinan Lanhai Village Bank, and Jining Lanhai Village Bank, converting them into branch institutions [3][4]. - The three acquired village banks are wholly owned subsidiaries of Qingdao Rural Commercial Bank, with ownership stakes of 100%, 100%, and 95% respectively [6]. Financial Performance - As of the end of 2024, the three village banks reported significant losses: Qingdao Pingdu Huimin Village Bank had a net loss of 1.509 million yuan, Shandong Yinan Lanhai Village Bank lost 4.056 million yuan, and Jining Lanhai Village Bank faced a net loss of 19.157 million yuan [6]. Industry Trends - The "village to branch" reform is gaining traction, with several banks, including Jining Bank, Anshan Bank, and Guizhou Bank, also acquiring village banks and converting them into branches [7]. - The recent approval for Industrial and Commercial Bank of China to acquire Chongqing Bishan Rural Bank and establish a new branch reflects a broader trend among major banks to consolidate and enhance their operational structures [7]. Risk Management and Reform - The "village to branch" initiative is seen as a crucial method for addressing risks and restructuring village banks, thereby improving their ability to provide financial services and manage risks effectively [8][9]. - The regulatory framework supports this transition, allowing high-risk village banks to be converted into branches if the main initiating bank has a local presence, thereby ensuring continued financial service availability [8].