Core Viewpoint - The article highlights a significant reduction in the number of bank branches in China by 2025, with over 1.1 million branches approved for closure and more than 840,000 new branches established, resulting in a net decrease of over 2,000 branches [4]. Group 1: Bank Branch Reductions - By 2025, the reduction in bank branches is primarily driven by rural credit cooperatives and village banks, with approximately 2,200 rural credit cooperative branches and nearly 1,000 village bank branches expected to close [4]. - In 2024, over 200 village banks exited the market, with 135 being absorbed and 85 acquired, indicating a trend of consolidation in the sector [4]. - The trend of "thinning" village banks is accelerating, with city commercial banks actively acquiring and restructuring these institutions [5]. Group 2: Transformation of Banking Services - Major banks like Minsheng Bank and Beijing Bank have initiated mergers with their village banks since 2024, reflecting a shift towards consolidation [5]. - The rise of mobile payment services has led to a reduction in the necessity for physical bank branches, prompting banks to shrink their branch networks [5]. - The China Banking Association's 2024 report emphasizes the need for banks to upgrade service channels and redirect resources to underserved areas, optimizing branch layouts [5]. Group 3: Regulatory Guidance - The National Financial Regulatory Administration aims to ensure the availability of physical bank branches in rural areas while balancing economic and social benefits, avoiding excessive competition and financial exclusion [6]. - The People's Bank of China encourages financial institutions to establish specialized branches in parks and communities to support rural revitalization and new citizen groups [6].