Core Viewpoint - The role of small and medium-sized banks in China's financial system is crucial for promoting inclusive finance, supporting the rural economy, and serving small and micro enterprises, with their stable operation being essential for effective financial services to the real economy [1][2] Group 1: Financial Stability and Risk Management - The financial regulatory authority has implemented a 16-character guideline focusing on stability, coordination, targeted measures, and precise risk mitigation, achieving significant results in preventing systemic financial risks during the 14th Five-Year Plan period [1][2] - The approach of "one province, one policy" and "one bank, one policy" has been adopted to address high-risk institutions, utilizing methods such as mergers, online repairs, and market exits to effectively manage risks [2] - Mergers and restructuring have emerged as the primary method for addressing operational difficulties in small financial institutions, enhancing their competitiveness through synergies and improved management [2] Group 2: Transformation of Small Banks - Some small banks are undergoing transformation from high-risk to low-risk zones, improving their risk resistance and regional competitiveness through policy guidance and internal development [3] - Jilin Bank, previously under significant operational pressure, has successfully transitioned by focusing on risk asset management and innovative recovery methods, enhancing its operational model to better serve small and medium enterprises [3] - Sichuan Rural Commercial Bank has leveraged the opportunity of rural credit cooperative reforms to enhance its risk management and service capabilities, addressing previous challenges of being small and fragmented [4] Group 3: Enhanced Service to the Real Economy - Small financial institutions are increasingly focusing on their core responsibilities, providing targeted financial services to urban and rural residents, small and medium enterprises, and the agricultural sector [6] - Jiangsu Rural Commercial Union Bank exemplifies the successful reform of rural credit systems, balancing scale, quality, efficiency, and structure to enhance its competitive advantage and service quality to the real economy [6]