展业近20年，外资行也在撤出村镇银行

Core Viewpoint - The year 2025 marks a significant retreat for village banks in China, with both domestic and foreign banks withdrawing from this sector due to various challenges and risks associated with village banking operations [1][2]. Group 1: Market Exit Trends - A total of 226 village banks have exited the market as of December 25, 2024, compared to 93 that exited throughout 2024 [1]. - The central government's focus on "orderly reform and restructuring of village banks" has been highlighted in recent policy documents, indicating a shift towards addressing the risks associated with these institutions [2]. Group 2: Foreign Bank Withdrawals - The exit of foreign banks from the village banking sector, such as HSBC, is not surprising due to challenges like low brand recognition and difficulty integrating into local economies [3]. - HSBC was one of the first foreign banks to enter the rural market in China, establishing multiple village banks since 2007, but has now decided to withdraw [3][4]. Group 3: Financial Performance Challenges - Village banks, including HSBC's, have struggled to achieve profitability, with HSBC's village banks reporting a total loan issuance of approximately 39.788 billion yuan and a loan balance of about 2.36 billion yuan as of 2024 [6]. - The Chongqing Rongchang HSBC Village Bank reported a total of 4,174 customers, with only 172 being loan customers, and a loan balance of 60.1224 million yuan, reflecting a modest increase of 1.22% from the previous year [6][7]. Group 4: Broader Implications for Financial Services - The exit of foreign banks indicates a failure to adapt international banking standards to the local credit culture, which relies heavily on personal relationships and informal information [8]. - Despite the withdrawal of village banks, the demand for financial services in rural areas remains, with state-owned banks and local commercial banks stepping in to fill the gap [8][9].