AGRICULTURAL BANK OF CHINA(SH:601288) Zheng Quan Shi Bao·2025-10-15 12:32Core Viewpoint - The restructuring of rural financial institutions into branches of major state-owned banks marks a significant step in the reform of China's rural financial system, aimed at enhancing financial stability and addressing risks in smaller banks [1][6][11]. Group 1: Institutional Changes - A total of 102 rural financial institutions have been renamed as branches of Agricultural Bank of China (ABC), with the process of integrating these institutions into the banking system underway [1][2]. - The transition involves the formal management of several rural commercial banks by ABC, which is seen as a crucial step in the reform process [3][5]. - The restructuring includes the renaming of various branches, such as the transformation of the Yanbian Rural Commercial Bank's New Bridge branch into an ABC branch [2][3]. Group 2: Financial Stability and Risk Management - The involvement of major banks in the reform process is intended to stabilize the financial system and mitigate risks associated with smaller banks [6][10]. - The consolidation of rural financial institutions under a unified provincial framework aims to enhance capital strength and risk resistance [6][11]. - The transfer of assets and liabilities from rural banks to ABC is designed to maintain operational stability without requiring additional capital injection from ABC [6][10]. Group 3: Competitive Landscape - The "village to branch" reform is expected to increase competition in rural financial markets, as state-owned banks enhance their presence and service offerings [7][11]. - The consolidation may lead to a decline in market share and profitability for existing small banks, as customers may shift their trust to larger state-owned banks [11]. - The reform is anticipated to improve the overall service quality and product offerings in rural areas, benefiting the rural economy and supporting the rural revitalization strategy [11].