China a închis 670 de bănci într-un an, pentru a-şi consolida sistemul financiar

China is accelerating the consolidation of small banks, especially rural ones, following a record closure of 670 institutions in 2025. This move aims to strengthen the financial system by reducing vulnerabilities. Authorities are merging and dissolving smaller banks to create fewer, larger institutions with better capitalization. Fitch Ratings highlights that small and rural banks remain the weakest part of China's financial system, facing low asset quality and governance issues. The profitability of rural banks has declined, and non-performing loans have increased significantly. Despite these challenges, Fitch believes the risks of contagion to the broader financial system are limited due to the local nature of these banks' operations.