21世纪经济报道·2025-10-11 14:45Core Viewpoint - The article discusses the recent trend of state-owned banks in China converting village banks into branches, highlighting the acquisition of Zhejiang Yongkang Nongyin Village Bank by Agricultural Bank of China and the implications for the banking sector [1][3]. Group 1: Recent Developments - Agricultural Bank of China has received approval to acquire Zhejiang Yongkang Nongyin Village Bank and establish three branches [1][3]. - This acquisition follows a similar move by Industrial and Commercial Bank of China, which was the first to convert a village bank into a branch earlier this year [6][7]. - The number of village banks controlled by Agricultural Bank of China will decrease from six to five after this acquisition [3]. Group 2: Regulatory Context - The regulatory environment has been increasingly focused on the risks associated with village banks, with over 90 village banks approved for exit this year, surpassing the total from the previous year [7][8]. - The regulatory bodies have emphasized the need for structural reorganization of village banks to mitigate risks and improve governance [7][9]. Group 3: Benefits of Conversion - The conversion of village banks to branches is expected to enhance operational standardization, risk resilience, and business scope through the support of the parent bank [9][10]. - Merging village banks into branches can lead to economies of scale, reducing operational and regulatory costs while improving governance and risk management capabilities [9][10]. - The restructuring is anticipated to accelerate the reduction of village banks, with a focus on enhancing their ability to serve small and micro enterprises and rural areas [9][10].