Core Viewpoint - The ongoing reform of rural financial institutions in China is leading to the consolidation of local banks, with several banks absorbing village banks and converting them into branches, indicating a trend towards the restructuring of small and medium-sized financial institutions in the country [1][2][3]. Group 1: Consolidation of Village Banks - Qingnong Commercial Bank announced the absorption and merger of three village banks, converting them into branches, marking its entry into the "village-to-branch" reform [2]. - Guangzhou Rural Commercial Bank has also approved the merger of five village banks into branches, further demonstrating the trend among listed banks to participate in the reform [3]. - Industrial and Commercial Bank of China (ICBC) has acquired a village bank in Chongqing, establishing it as a branch, representing the first instance of a state-owned bank directly participating in such a merger this year [3]. Group 2: Closure of Bank Branches - Liaoning Rural Commercial Bank has closed at least 55 branches this year, with regulatory approval for 18 closures in June alone, indicating a significant reduction in its operational footprint [5][6]. - The closures are part of a broader strategy to streamline operations and improve efficiency within the bank's network [5][6]. - The bank's restructuring efforts follow its establishment as a provincial-level unified legal entity, which has drawn attention to its operational strategies [6][7]. Group 3: Financial Performance of Merged Entities - The three village banks absorbed by Qingnong Commercial Bank reported significant losses in 2024, with net losses of 150.9 thousand, 405.6 thousand, and 1,915.7 thousand respectively [2]. - The financial struggles of these banks highlight the challenges faced by smaller financial institutions in maintaining profitability [2]. Group 4: Digital Transformation Efforts - Liaoning Rural Commercial Bank is actively pursuing digital transformation, including the deployment of large model technology for applications in marketing and customer service [7].