Recently, Shaanxi Yulin Yuyang Rural Commercial Bank and Shaanxi Hengshan Rural Commercial Bank initiated the establishment of Shaanxi Yulin Rural Commercial Bank through a new merger and received approval from the Shaanxi Banking and Insurance Regulatory Bureau to become a new prefecture-level city in our province. Rural commercial bank merger and reorganization case.
Across the country, a wave of mergers and reorganizations is coming around rural credit institutions and even small and medium-sized banks.
The reporter checked the China Banking and Insurance Regulatory Commission’s announcement and found that as of the end of 2019, there were 4,607 legal persons in the banking financial institutions across the country, including 1,478 rural commercial banks. On the list of legal persons published by the China Banking and Insurance Regulatory Commission, there are 55 rural commercial banks in Shaanxi.
The reform, merger and reorganization of rural financial institutions in Shaanxi is gradually accelerating. According to news on the official website of Qinnong Bank on July 4, Qinnong Bank plans to fully acquire Xi'an Chang'an District Rural Credit Cooperative Union (referred to as "Chang'an United Union"). The price of the net assets (if the net assets per share is less than 1 yuan, it is calculated as 1 yuan per share) to purchase the shares of Chang'an United News held by existing shareholders of Chang'an United News. After Qinnong Rural Commercial Bank wholly acquired Chang'an United Press, the legal entity status of Chang'an United Press remained unchanged, its rights and obligations continued to be borne by the acquired Chang'an United Press, and the labor contract relationships of its employees remained unchanged.
At the Qinnong Bank’s annual shareholders’ meeting held on June 29, the above proposal was reviewed and approved. Prior to this, in 2015, Qinnong Bank opened after completing the merger and establishment of six urban cooperatives in the original Xi'an Beilin District, Xincheng District, Lianhu District, Yanta District, Weiyang District, and Baqiao District; starting from 2016, Qinnong Bank initiated the restructuring of Yanliang District, Lintong District, Gaoling District Cooperatives and Zhouzhi County, Lantian County and Hu County Cooperatives. In 2017, Qinnong Bank also implemented custody of Chang'an Associated Press.
The person in charge of a financial services institution in Xi'an, surnamed Wang, said that some existing rural financial institutions cannot escape the influence of history and policies, such as insufficient financial products, high non-performing loan rates, and even losses and occupied funds. The restructuring reform is conducive to strengthening the resources of financial institutions and attracting more investors. As a result, many places across the country are promoting the establishment of rural commercial banks and the restructuring of rural cooperative medical institutions.
Since this year, many rural commercial banks across the country have merged and reorganized. On June 23, Wuxi Rural Commercial Bank and Jiangyin Rural Commercial Bank announced on the same day that they planned to invest 782 million yuan and 338 million yuan respectively to jointly establish Xuzhou Rural Commercial Bank. In addition, in Henan, Luohe City, Jiaozuo City and Sanmenxia City are all intensively promoting the establishment of municipal rural commercial banks.
In addition to the above-mentioned rural commercial banks, many small and medium-sized banks are also facing a wave of restructuring. For example: On June 26, Panzhihua City Commercial Bank and Liangshan Prefecture Commercial Bank separately announced that they would jointly form a commercial bank through a new merger.
An analyst from Huatai Securities believes that the restructuring wave of small and medium-sized banks stems from the demand of financial institutions to improve their ability to resist risks. There are currently more than 4,000 small and medium-sized banks in China. Due to the relatively limited management and operating capabilities of some small and medium-sized banks, under the increasing downward pressure on the economy and the impact of the epidemic, some small and medium-sized banks have been affected, and their balance sheets and operational stability have been threatened.
In fact, Cao Yu, vice chairman of the China Banking and Insurance Regulatory Commission, mentioned at a press conference held by the State Council Information Office on April 22, “Small and medium-sized banks have been significantly affected during the epidemic and will vigorously promote this year. The reform and reorganization of small and medium-sized banks. ”
The current restructuring of small and medium-sized banks in China includes the integration and reorganization of regional institutions to become larger city commercial banks or rural commercial banks to reduce intra-regional competition; there is also the introduction of strategic investors to revitalize the internal banks. assets, increase bank capital and improve competitiveness.
With the emergence of some large-scale city commercial banks with strong risk resistance, especially rural commercial banks, they are also becoming an important force in queuing up for listing. In the latest basic information table of companies applying for initial public offerings of stocks disclosed by the China Securities Regulatory Commission, 18 banks are lining up for IPOs, including 11 rural commercial banks.
Huashang Daily reporter Li Cheng