Jin Rong Shi Bao·2026-01-16 02:08Core Viewpoint - The restructuring of village banks is accelerating in 2026, with state-owned banks actively converting village banks into branch institutions, as evidenced by the approval of the acquisition of Zhejiang Anji Jiaoyin Village Bank by Bank of Communications [1][2]. Group 1: Restructuring Activities - Bank of Communications has been approved to acquire Zhejiang Anji Jiaoyin Village Bank and convert it into three branches, marking the first case of a state-owned bank's "village-to-branch" initiative in 2026 [2]. - Since 2025, over 300 village banks have exited the market, with "village-to-branch" and "village-to-subsidiary" becoming the mainstream exit strategies [1][2]. - In 2025, Bank of Communications completed similar conversions for multiple village banks in Qingdao and Sichuan, demonstrating a consistent strategy in this area [2][3]. Group 2: Industry Trends - The "village-to-branch" strategy involves the full acquisition of village banks by their parent banks, integrating them into the main banking system to enhance operational efficiency and resource allocation [4]. - The trend of state-owned banks engaging in "village-to-branch" conversions is driven by the desire to strengthen their rural financial services while minimizing risks associated with weaker village banks [4]. - Other banks, including Agricultural Bank of China and Industrial and Commercial Bank of China, have also participated in the restructuring of village banks, indicating a broader industry movement [2][3]. Group 3: Regulatory Environment - The acceleration of village bank exits is influenced by regulatory policies aimed at reforming small financial institutions, emphasizing a focus on supporting agriculture and small enterprises [7][8]. - In 2025, 310 village banks exited the market, accounting for over 70% of the total exits since 2010, highlighting the significant impact of regulatory guidance [7]. - The central government's economic work conference in late 2025 underscored the importance of "reducing quantity and improving quality" in small financial institutions, which will continue to shape the reform landscape in 2026 [8].