This bank is disbanded! All operations have been cleared to zero and all business activities have been suspended in China
Another bank has been approved for dissolution.
Recently, the official website of the State Administration for Financial Regulation approved that Chongqing Liangping Aoxin Rural Bank plans to achieve market-oriented exit of rural banks through dissolution, and has cleared all deposit and loan businesses.
Since the beginning of the year, several rural banks have withdrawn from the market, some directly disbanded, and some have "exited" due to being absorbed and merged.
After nearly 14 years of operation, this bank disbanded
Recently, the Chongqing Banking and Insurance Regulatory Bureau issued an approval on the dissolution of Chongqing Liangping Aoxin Rural Bank Co., Ltd., which shows that Chongqing Liangping Aoxin Rural Bank Co., Ltd. plans to achieve market-oriented exit of rural banks through dissolution and has cleared all deposit and loan businesses.
The Chongqing Banking and Insurance Regulatory Bureau has approved the dissolution of Chongqing Liangping Aoxin Rural Bank, and requires the bank to strictly follow relevant laws and regulations to handle dissolution related matters. From the date of receiving the approval, all business activities shall be immediately stopped, the financial license shall be returned to the Wanzhou Banking and Insurance Regulatory Bureau, the dissolution announcement shall be made to the public, and the liquidation and cancellation registration procedures shall be handled in accordance with the law.
Public information shows that Chongqing Liangping Australia New Zealand Rural Bank was established with investment from Australia and New Zealand Banking Group Co., Ltd. It is a foreign-owned bank.
In April 2009, Chongqing Liangping Aoxin Rural Bank was approved for construction. In June 2010, the registered capital of the bank was changed from 7.7 million yuan to 30 million yuan. In November 2021, the bank was approved for a targeted IPO to Australia and New Zealand Banking Group Limited, increasing its registered capital by 13 million yuan.
![This bank is disbanded! All operations have been cleared to zero and all business activities have been suspended in China](https://a5qu.com/upload/images/58685bd0b32dde8ee889fc22723e0b09.jpg)
Rural Bank Reform Insurance Enters the "Fast Track"
Rural banks are important corporate banking institutions in county-level areas of China, and also the largest number of financial institutions in the banking industry. According to data from the former China Banking and Insurance Regulatory Commission, as of the end of 2022, there were 1645 rural banks, accounting for approximately 40.46% of the total number of banking and financial institutions in the country.
In recent years, the reform and insurance work of rural banks has been highly valued.
On January 13, 2023, the former China Banking and Insurance Regulatory Commission proposed at its 2023 work meeting to accelerate the reform and insurance transformation of small and medium-sized banks. Actively and steadily promote the risk resolution of urban commercial banks and rural credit cooperatives, and steadily promote the reform and restructuring of rural banks. Encourage multiple channels to supplement the capital of small and medium-sized banks.
On April 6th, the former China Banking and Insurance Regulatory Commission issued a notice on the key work of comprehensively promoting rural revitalization in the banking and insurance industry in 2023, which clearly pointed out "accelerating the reform of rural credit cooperatives into insurance and promoting the structural restructuring of rural banks.".
Zhou Maohua, a macro researcher in the financial market department of Everbright Bank, said that the main purpose of reforming rural banks into insurance is to promote rural banks to rationalize their equity structure, improve their internal governance, eliminate risks from the source, improve business efficiency, enhance their ability to serve the regional real economy and foster differentiated competitiveness through market-oriented and legal reforms.
In the view of analysts, due to fierce competition in the banking industry, market-oriented exit is a good way to prevent and resolve risks for small and stagnant rural banks, especially those with management problems and even losses.