Downgrading of equity leads to unsuccessful equity flow. "Reducing quantity and improving quality" has become a development trend for small and medium-sized banks.

Against the background of difficulty in credit lending, increasing pressure on interest margins, and operational challenges, recently, Shanxi Yuci Rural Commercial Bank and Hunan Changde Rural Commercial Bank have been downgraded by rating agencies for their main and debt ratings. At the same time, the equity of some small and medium-sized banks has become a "hot potato". Since the beginning of this year, the equity of many banks has been listed for transfer on judicial auction platforms, and many of them have been unable to avoid being unsold even when sold at a discounted price. Industry experts state that "reducing quantity and improving quality" has become a trend in the industry. In the future, small and medium-sized banks should focus on improving corporate governance, leveraging regional economic characteristics and their own strengths to pursue differentiated operations in order to achieve high-quality development.