A new precedent will be added to the merger of small and medium-sized banking institutions in rural areas.
Shaanxi Qinnong Rural Commercial Bank Co., Ltd. (hereinafter referred to as "Qinnong Bank") held an extraordinary general meeting of shareholders on December 25 to consider the merger of Lantian Rural Commercial Bank and Zhouzhi Rural Commercial Bank and other related proposals on Qinnong Bank.
Qinnong Bank**.
As of press time, Qinnong Bank has not yet issued an announcement on the consideration of relevant proposals at the extraordinary general meeting of shareholders.
Since the beginning of this year, about 30 small and medium-sized rural banking institutions have been dissolved, either due to absorption and merger, or market-oriented withdrawal, and the reform and risk reduction have continued to advance.
Qinnong Bank plans to absorb and merge two banks.
It is understood that Lantian Rural Commercial Bank and Zhouzhi Rural Commercial Bank are both wholly-owned subsidiaries of Qinnong Bank. Lantian Rural Commercial Bank was established in June 2017 and is a rural commercial bank wholly owned by Qinnong Bank on the basis of the original Lantian County Rural Credit Cooperative, with a registered capital of 600 million yuan.
Zhouzhi Rural Commercial Bank is a county-level legal person financial institution wholly owned by Qinnong Bank and restructured from Zhouzhi County Rural Credit Cooperative.
Qinnong Bank was established in May 2015 as a provincial-level rural commercial bank established by merger on the basis of the former Rural Credit Cooperatives of the Sixth District of Xi'an City.
As of the end of June 2023, the registered capital of Qinnong Bank is 882.6 billion yuan;In 2022, the operating income will be 636.6 billion yuan. As a rural credit integration platform in Shaanxi Province, after its establishment, Qinnong Bank absorbed and merged a number of rural credit institutions such as Xi'an Yiyi Rural Commercial Bank and Xi'an Chang'an District Rural Credit Cooperative.
An insider of a rural commercial bank told reporters that small and medium-sized rural banking institutions lack risk mitigation methods, and mergers and acquisitions can further enhance their ability to resist risks, increase resource linkage and business development.
According to the 2022 annual report of Qinnong Bank, the largest shareholder of the bank is Shaanxi Finance Investment Management Co., Ltd., with a shareholding ratio of 914%, is approved by the Shaanxi Provincial Party Committee and the province, and is fully funded by the Shaanxi Provincial Department of Finance on behalf of the province. At present, there are 6 shareholders holding more than 5% of the shares.
Qinnong Bank's 2022 annual report.
Absorption and merger are frequent.
According to the Measures for the Implementation of Administrative Licensing Items for Rural Small and Medium-sized Banking Institutions, rural small and medium-sized banking institutions include: rural commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks, loan companies, rural mutual fund cooperatives and other rural small and medium-sized banking institutions approved by the former China Banking and Insurance Regulatory Commission.
Since the beginning of this year, the reform of small and medium-sized rural banking institutions has accelerated, and mergers, reorganizations, and dissolutions are the main means of reducing risks.
The reporter found that since the beginning of this year, about 30 small and medium-sized rural banks have either withdrawn from marketization or dissolved due to absorption and merger. For example, a few days ago, the regulatory authorities agreed to the merger of Deyang Rural Commercial Bank with Sichuan Guanghan Rural Commercial Bank, Sichuan Shifang Rural Commercial Bank, Sichuan Mianzhu Rural Commercial Bank, and Sichuan Zhongjiang Rural Commercial BankXinjiang Wushi Rural Commercial Bank Co., Ltd. *** Xinjiang Awati Rural Commercial Bank Co., Ltd. and other 8 rural credit institutions were dissolved due to absorption and merger.
Compared with the previous merger and reorganization of small and medium-sized rural banks to become 'bigger and stronger', the current merger and reorganization is mainly for 'group heating'. Dong Ximiao, chief researcher of Zhaolian, told reporters that under internal and external pressure, the survival and development of small and medium-sized rural banks are facing challenges, and some smaller rural commercial banks, rural credit cooperatives, and village and township banks are more difficult to operate, and mergers and acquisitions have become a more realistic choice.
According to the data, as of the end of June 2023, the balance of loans to agriculture-related and small and micro enterprises of small and medium-sized rural banks across the country reached 154 trillion yuan, 161 trillion yuan, agriculture-related and small and micro enterprise loans accounted for nearly eighty percent of the total loans, and it is the main force of financial support for agriculture and small enterprises.
Zeng Gang, director of the Shanghai Finance and Development Laboratory, told reporters that small and medium-sized banks in rural areas should change their business philosophy and comprehensively improve their operation and management capabilities. From the "scale" first to the "quality" priority, gradually build a capital-intensive management mechanism, in addition to optimizing the business structure, the use of regional advantages, customer characteristics, take a differentiated development path. He believes that wealth management, pension services and financial services for new citizens are all areas that small and medium-sized banks in rural areas can actively explore.
It is expected that the number of mergers, acquisitions and dissolutions between small and medium-sized rural banks will gradually increase in the future. Xu Kang, chief analyst of Huachuang ** Non-bank, said that competitive rural small and medium-sized banks are more focused on local operations and put forward higher requirements for individual ability to maintain customer groups.
Editor-in-charge: Tao Jiyan |Review: Li Zhen |Supervisor: Wan Junwei.
*: China ** newspaper).