Core Viewpoint - Jiangsu Bank has received approval from the Ningbo Financial Regulatory Bureau to open its Ningbo branch, marking a rare case of a city commercial bank acquiring a rural bank and converting it into a branch [1][2][3]. Group 1: Acquisition and Branch Establishment - The Ningbo branch of Jiangsu Bank originates from the acquisition of Ningbo Jiangbei Fumin Rural Bank, which was approved by the bank's board in late 2023 [3]. - The acquisition process was kept confidential until regulatory approval was obtained, highlighting the uncertainty involved in such transactions [3]. - Ningbo Jiangbei Fumin Rural Bank, established in 2011, had a registered capital of 100 million yuan and reported a revenue of 423.87 million yuan with a net loss of 68,800 yuan as of November 30, 2024 [3]. Group 2: Regulatory Environment - The establishment of branches by city commercial banks in different provinces has been approached with caution by regulators, with high thresholds set for such operations [4]. - Recent regulatory frameworks aim to encourage local banks to focus on serving the real economy, limiting the expansion of city commercial banks into other regions [4]. - The central financial work conference emphasized strict entry standards and regulatory requirements for small financial institutions, indicating limited potential for widespread establishment of branches in different regions [4]. Group 3: Industry Trends - The reform and risk mitigation of small financial institutions have been prioritized, with a focus on restructuring rural banks [6]. - There have been precedents for acquiring rural banks and establishing branches in other provinces, such as Harbin Bank's acquisition of Chongqing Youyang Rural Bank [6][8]. - The trend of restructuring rural banks is expected to continue, with support for rural commercial banks to establish branches aimed at risk mitigation [5].