Core Viewpoint - The crisis among small and medium-sized banks in China is becoming increasingly evident, with a significant number of banks being dissolved or merged into larger institutions due to various economic pressures and challenges faced by small enterprises [1][2][10]. Group 1: Bank Closures and Mergers - In 2023, a total of 204 banks were dissolved, and by mid-2024, 210 small and medium-sized banks had been approved for dissolution, surpassing the previous year's total [1]. - The number of dissolved banks represents approximately 5% of the total banking institutions, primarily affecting those targeting lower-tier markets [1]. - Many of these struggling banks are being absorbed by larger banks, indicating a trend of consolidation in the banking sector [1][2]. Group 2: Factors Contributing to Decline - The decline of small and medium-sized banks is attributed to multiple factors, including the deterioration of small business operations, economic pressures at the local level, and difficulties in capital replenishment [2]. - The relationship between small banks and small enterprises has weakened, as small banks previously relied on local businesses for stable deposits and credit [3][10]. Group 3: Impact on Lending and Loan Quality - Over 60% of small banks' loans are directed towards local small enterprises, but the recent increase in business failures has led to a decline in credit activity [4]. - In 2023, over 500,000 businesses closed, resulting in a rise in non-performing loans for small banks, with some banks reporting non-performing loan rates as high as 2.86% [5][13]. - The tightening of credit by small banks in response to rising defaults has further exacerbated the situation, leading to a vicious cycle of business failures and bank insolvency [6]. Group 4: Shifts in Lending Practices - Large state-owned banks have reduced interest rates for small and micro-enterprise loans, making them more attractive to borrowers, which has drawn customers away from small banks [6][9]. - By the end of 2024, the proportion of loans from rural financial institutions to small and micro enterprises decreased to below 27% [8]. Group 5: Capital and Profitability Challenges - Small banks are facing significant pressure to improve their capital adequacy ratios, which are notably lower than those of larger banks [11]. - The reliance on high-interest deposit strategies has increased the cost of liabilities for small banks, while their net interest margins have declined [12]. Group 6: Strategic Shifts and Future Outlook - There is a growing recognition among small banks that they need to abandon the "scale obsession" and focus on more sustainable, localized growth strategies [17][20]. - The trend is shifting towards enhancing service efficiency through resource consolidation rather than expanding the number of institutions [20]. - Small banks are increasingly focusing on niche markets and local characteristics to drive growth, particularly in rural areas [21].

批复还表示，该行应严格按照有关法律法规要求办理吸收合并事宜，并督促上述6家机构完成法人机构 终止相关事宜。吸收合并筹备事项完成后，该行应按照有关程序和规定向监管部门申请或报告分支机构 开业等相关事项。 成都农商银行官网显示，成都农商银行是在原成都市农村信用社基础上改制成立的股份制商业银行，于 2010年1月15日挂牌开业。2011年完成增资扩股，注册资本达到100亿元。2020年6月，完成股权结构调 整，回归国有，市区两级国资合计持股比例79.58%，是成都市国资持股比例最大的银行，系市属国资 一级企业。 央广网北京7月8日消息（记者 宓迪）今年以来，多起中小银行整合持续推进。近日，金融监管总局网 站披露了四川金融监管局关于成都农商银行吸收合并自贡中成村镇银行等6家机构的批复。 根据此次批复，监管部门同意成都农商银行吸收合并自贡中成村镇银行、峨眉山中成村镇银行、犍为中 成村镇银行、长宁中成村镇银行、筠连中成村镇银行、南部县中成村镇银行，并承接上述6家机构的债 权、债务。 此外，中成村镇银行是由原中国银监会批准设立，成都农商银行作为主发起行，在四川、河北、云南、 山东、福建、江苏、新疆设立的39家具有独立法人资 ...

Core Viewpoint - The consolidation and restructuring of small and medium-sized banks in China is accelerating, with a significant increase in mergers and dissolutions expected to continue through 2025, leading to a potential reduction in the number of banks from over 4,600 to around 3,000 [1][6][7]. Group 1: Mergers and Acquisitions - In the first five months of this year, 184 small and medium-sized banks have been approved for mergers or dissolutions, indicating a rising trend in bank consolidations [1][4]. - Notable mergers include Ningxia Bank's absorption of Ningxia Helan Huishang Village Bank and Inner Mongolia Rural Commercial Bank's establishment through the merger of 120 institutions [3][4]. - Jiangmen Rural Commercial Bank and other banks are also planning to absorb village banks, reflecting a broader trend of consolidation in the sector [4][5]. Group 2: Industry Trends - The banking industry is shifting from a focus on quantity to quality, with an emphasis on improving operational efficiency and risk management [7][8]. - The government is actively promoting the restructuring of small financial institutions to address risks and enhance governance, management, and business restructuring [7]. - Analysts suggest that the consolidation of smaller village banks into larger commercial banks will improve service capabilities and risk resilience [8]. Group 3: Historical Context and Future Outlook - The number of small banks undergoing mergers has increased from 43 in 2022 to 204 projected for 2024, indicating a clear upward trend in consolidation [4][7]. - Historical examples from other countries show that post-merger banking sectors tend to be more stable and efficient, with improved capital adequacy and reduced operational costs [8].