Core Viewpoint - The establishment of Inner Mongolia Rural Commercial Bank has been approved by the National Financial Supervision and Administration, with a six-month timeline for completion of the setup process [1][2]. Group 1: Establishment and Timeline - The approval for the establishment of Inner Mongolia Rural Commercial Bank was granted on March 14, with a requirement to complete the setup within six months [1]. - The preparatory team for the bank held its second meeting on March 13, emphasizing the importance of meeting key milestones and ensuring timely operations [1][2]. Group 2: Preparatory Work - The preparatory work includes a comprehensive breakdown of non-performing asset packages, ensuring all necessary requirements for opening are met, and enhancing legal awareness and compliance [2]. - The bank's establishment is part of a broader reform strategy, with the Inner Mongolia Rural Credit Cooperative Union and 93 local financial institutions having approved the merger to form the new bank by September 2024 [2]. Group 3: Financial Context - As of the end of 2023, the total asset scale of the Inner Mongolia rural financial system is 841.8 billion, with deposits totaling 672.1 billion and loans amounting to 436.1 billion [4]. - The establishment of Inner Mongolia Rural Commercial Bank will create another provincial-level bank with nearly one trillion in assets, enhancing the integration of financial resources in the region [4]. Group 4: Broader Industry Trends - The reform in Inner Mongolia follows a trend where other regions, such as Gansu and Xinjiang, are also transitioning to a unified legal entity model for their rural financial institutions [4][5]. - The shift from a joint bank model to a unified legal entity model is seen as a more thorough reform approach, aimed at better supporting the local economy [4].

Core Viewpoint - The reform of provincial credit cooperatives has accelerated since 2025, with multiple provinces establishing new rural commercial banks, indicating a significant shift in the rural financial landscape and the emergence of "new trillion banks" [1][7][8]. Reform Progress - As of February 28, 2025, several provincial credit cooperatives have been approved or established, including Jiangsu, Jiangxi, and Henan, with the latter two officially founded within a month of approval [1][6]. - The reform has been implemented in 10 provinces, including Zhejiang, Shanxi, and Sichuan, with many rural financial institutions exceeding one trillion yuan in assets [1][7]. Asset Scale - The asset totals for various provincial rural commercial banks as of the end of 2024 include: - Zhejiang: 6 trillion yuan - Sichuan: 2.4 trillion yuan - Henan: 2.58 trillion yuan - Jiangxi: 1.3 trillion yuan - Guangxi: 1.37 trillion yuan [2][8]. Reform Models - The reform paths include the rural commercial bank model, unified legal person model, financial holding company model, and financial service company model, with most provinces adopting the first two [9][10]. - The "provincial rural commercial bank" model retains a single provincial legal entity, while the "provincial rural commercial bank" model maintains independent legal status for local banks, allowing for more localized flexibility [9][10]. Challenges and Considerations - The reform faces challenges such as balancing risk mitigation with grassroots service needs, and the complexity of integrating numerous local institutions [3][17]. - The historical context of rural credit cooperatives, which have evolved from non-profit mutual aid organizations to commercial entities, adds layers of complexity to the current reform efforts [13][14]. Future Directions - The reform aims to clarify ownership structures, improve governance, and enhance the operational efficiency of rural financial institutions [17][18]. - Ongoing efforts include capital supplementation, bad debt management, and strengthening regulatory oversight to ensure sustainable financial operations [18][19].