In 2024, the number of financial institutions in China will decrease by 195.

The 2025 Government Work Report outlines plans for the risk disposal and transformation and development of local small and medium-sized financial institutions, specifically mentioning merger and reorganization and market exit as ways to achieve this. Recently, the China Banking and Insurance Regulatory Commission released the "List of Banking Institutions (as of the end of 2024)" showing that there were 4295 banking institutions in China as of the end of 2024, 195 fewer than the end of 2023 and 307 fewer than the end of 2021. Over the past three years, the number of banking institutions has shown a trend of accelerated reduction. As of the end of 2023, there were 4490 banking institutions, 4567 in 2022 and 4602 in 2021. Accordingly, the number of banking institutions reduced by 77 in 2023 and 35 in 2022. The number of rural commercial banks, rural credit cooperatives and township banks accounted for more than 80% of the total reduction in the past three years. In 2024, the China Banking and Insurance Regulatory Commission said that it would accelerate the merger and reorganization of rural small and medium-sized banks, reduce the number and levels of rural small and medium-sized banks; explore the merger and reorganization of joint-stock banks, city commercial banks and the township banks they established, and achieve the reduction and improvement of township banks through the absorption and merger of the initiator and the acquisition and merger of other banks. From the practice, the reform of provincial credit cooperatives is advancing steadily, and many places choose to establish unified law persons of district-level rural commercial banks. "Village Branch Transformation" and "Village Branch Transformation" cases are frequent. Experts believe that the reduction in the number of rural small and medium-sized financial institutions reflects the reform trend of mergers and reorganizations in recent years. The pace of mergers and reorganizations of small and medium-sized banks has accelerated in recent years, and this trend will continue after 2025. Some small and medium-sized banks with difficulties in operation and insufficient competitiveness may still achieve integration through mergers and reorganizations or market exits.