On January 10, the administrative licensing information disclosed by the State Administration of Financial Supervision showed that the shares of Lucheng Rural Commercial Bank in Wenzhou, Zhejiang Province (hereinafter referred to as "Lucheng Rural Commercial Bank") have been approved to transfer the equity of 4 village and township banks, and after the transfer is completed, the shareholding ratio is more than 50%. 
Successively acquired the equity of four village and township banksAccording to the approval information, on December 29 last year, the Guizhou Supervision Bureau agreed that Lucheng Rural Commercial Bank would transfer the equity of Dafang Fumin Village Bank, Nayong Fumin Village Bank, Jinsha Fumin Village Bank, and Changshun Fumin Village Bank. Specifically, first of all, Lucheng Rural Commercial Bank was allowed to transfer a total of 5.94 million shares of Dafang Fumin Village Bank held by 8 natural persons, and after the transfer was completed, Lucheng Rural Commercial Bank held a total of 28.62 million shares of the bank, and the shareholding ratio rose to 53%. 
Secondly, Lucheng Rural Commercial Bank was allowed to acquire 4.2 million shares of Nayong Fumin Village Bank held by Wenzhou Zhiyuan*** and 2 million shares held by Wang Suchun. After the completion of the transfer, Lucheng Rural Commercial Bank held a total of 31.4 million shares of the bank, and the shareholding ratio rose to 5233%。
Thirdly, Lucheng Rural Commercial Bank was allowed to acquire 3 million shares of Jinsha Fumin Village Bank held by Zhejiang Resos Enterprise Management ***, as well as 3 million shares held by 5 natural persons. After the completion of the transfer, Lucheng Rural Commercial Bank holds a total of 31.2 million shares of the bank, and the shareholding ratio has risen to 52%. 
Finally, Lucheng Rural Commercial Bank was allowed to transfer 5 million shares of Changshun Fumin Village Bank held by Han Qi, and after the completion of the transfer, Lucheng Rural Commercial Bank held a total of 28 million shares of the bank, and the shareholding ratio rose to 56%. 
According to the data, the above-mentioned four village banks were all established in 2012 and located in Guizhou Province, and Lucheng Rural Commercial Bank is a major shareholder, with a registered capital of between 50 million yuan and 60 million yuan. In terms of Lucheng Rural Commercial Bank, the official website shows that the bank has established 44 village and township banks, including 27 in Guizhou, 6 in Zhejiang, 9 in Jiangxi, 1 in Henan and 1 in Shanghai. As of the end of 2022, Lucheng Rural Commercial Bank has achieved financial income of 412.9 billion yuan, with a total profit of 70.4 billion yuan, with a core Tier 1 capital adequacy ratio of 1077%, Tier 1 capital adequacy ratio 1096% and a capital adequacy ratio of 1362%。The balance of adjusted on- and off-balance sheet assets was 13154.1 billion yuan. In recent years, a number of village and township banks have changed their shareholdingsIndustry insiders pointed out that Lucheng Rural Commercial Bank has continuously increased its holdings in four village and township banks, which not only demonstrates its confidence in the long-term development of village and township banks, but also helps village and township banks improve their ability to hold business and resolve potential risks. It is worth noting that with the continuous advancement of the reform and risk reduction work, in recent years, the equity change actions of village and township banks have been frequent. According to the reporter's statistics, in the approval information for equity changes disclosed by the State Administration of Financial Regulation**, nearly 80 village and township banks will change their equity in 2023. From the perspective of the change method, it is mainly for the shareholders of the initiating bank to increase their holdings. For example, from August to November last year, Hangzhou United Rural Commercial Bank increased its shareholding in Zhejiang Zhuji United Village Bank to 49%, Zhejiang Keqiao United Village Bank to 60%, and Zhejiang Wenling United Village Bank to 51 through the transfer of other shareholders' equity02%, and the shareholding ratio of Zhejiang Changshan United Village Bank rose to 46%. Wenzhou Ouhai Rural Commercial Bank also through the way of equity transfer, Shijiazhuang Xinhua Hengsheng Village Bank, Chengde County Hengsheng Village Bank, Pingquan Hengsheng Village Bank, Gu'an Hengsheng Village Bank shareholding ratio rose to %, of which the 100% holding of the village bank was absorbed and merged. In October last year, ** issued the "Implementation Opinions on Promoting the High-quality Development of Inclusive Finance", proposing to "consolidate the responsibilities of the main initiating banks of village and township banks, increase the shareholding ratio, strengthen the willingness to perform duties, do a good job in support, service and supervision, and establish a governance structure with clear responsibilities led by the main initiating banks". For example, in January last year, Shaanxi Yulin Rural Commercial Bank acquired the equity of five village and township banks held by Shaanxi Dingbian Rural Commercial Bank. In November last year, Pan Gongsheng, governor of the People's Bank of China, said at the annual meeting of the 2023 Financial Street Forum that after the reform of risk reduction in recent years, the number of high-risk small and medium-sized banks has dropped by half from the peak. A small number of provinces with relatively concentrated high-risk institutions are formulating and implementing a reform plan for small and medium-sized banks to replenish capital through multiple channels. The People's Bank of China will work with relevant departments to improve the financial risk monitoring, assessment, prevention and control system, and improve the early correction mechanism for financial risks with hard constraints. Editor: Joey Review: Chen Mo.