"Over a hundred rural banks have 'disappeared,' accelerating the resolution of risks in small and medium-sized banks."

On June 10th, the China Banking Regulatory Commission approved the dissolution of three Xingfu series rural commercial banks in Yunnan province - Luoping, Shizong, and Luliang, due to their absorption and merger by the Zhan Yi Xingfu Rural Commercial Bank in Qujing. On the same day, two rural commercial banks in Zhejiang province were also approved for dissolution. So far this year, more than a hundred rural commercial banks have been approved to exit the market. Industry insiders believe that reducing quantity is only superficial, the real core is to improve quality. Since the beginning of this year, local governments have been progressing in an orderly manner on reforming and disposing of risks in local small and medium financial institutions, using comprehensive methods such as mergers and reorganizations, as well as market exits, in accordance with market-oriented and legal principles.