Small and medium-sized banks' wealth management operations may not need to be "zeroed out" by the end of 2026, and whether the parent bank's qualification can be approved is crucial for the wealth management subsidiaries.

Recently, reporters learned that city commercial banks that were previously required to clear their funds by the end of 2026 may now be able to continue offering wealth management products, but the scale needs to be controlled and in some regions, the year-end balance must not exceed the beginning balance. Regarding the application process for wealth management subsidiaries, industry insiders revealed that the current application process has been changed to the bank submitting an application, then the local financial regulatory bureau reporting to the Asset Management Department of the national financial regulatory authority, and finally reporting to the Central Financial Committee. The qualifications of the parent bank and the scale of its wealth management business are the two main aspects examined by the financial regulatory authorities, with the parent bank's qualifications being the key factor in whether the wealth management subsidiary can be approved.