国有大行再出手！农行村改支再获批

Core Viewpoint - The restructuring of village banks into branches (referred to as "village to branch" or "村改支") is gaining momentum among major state-owned banks in China, with Agricultural Bank of China acquiring Zhejiang Yongkang Nongyin Village Bank and establishing three branches [1][2]. Group 1: Recent Developments - Agricultural Bank of China has received approval to acquire Zhejiang Yongkang Nongyin Village Bank and establish three branches: Yongkang Jinshan Branch, Yongkang Huku Branch, and Yongkang Houcheng Street Branch [1]. - This follows the earlier move by Industrial and Commercial Bank of China (ICBC) in June, which was the first state-owned bank to implement the "village to branch" model by acquiring Chongqing Bishan Nongyin Village Bank [1][2]. Group 2: Regulatory Context - The regulatory body has been focusing on the risks associated with village banks, which constitute over 90% of the banking sector in China and play a crucial role in local economic development and financial inclusion [2][3]. - In 2021, the former China Banking and Insurance Regulatory Commission issued guidelines to promote the merger and restructuring of village banks to mitigate risks, allowing high-risk village banks to be converted into branches if the parent bank has a local presence [2][3]. Group 3: Industry Implications - The restructuring is expected to enhance operational standardization, risk resilience, and expand the business scope and technological capabilities of the newly formed branches [4]. - Merging village banks into branches can lead to improved corporate governance and reduced operational costs, while also enhancing the ability to serve small and micro enterprises and rural areas [4][5]. - The pace of restructuring is anticipated to accelerate, resulting in a gradual decrease in the number of village banks [4][5].