China Shutters Nearly 25% of Its Banks Amid Oversight Push
China has reportedly closed almost 25% of its banks amid increased oversight of smaller lenders. The world’s second largest economy shuttered a record 670-plus banks in 2025, the Financial Times (FT) reported Saturday (Oct. 3), citing figures from China’s National Financial Regulatory Administration. The closures, primarily in rural areas, place the number of banking entities […] The post China…
China has closed nearly 25% of its banks due to increased oversight of smaller lenders, according to a report by PYMNTS. The Financial Times (FT) cited figures from China’s National Financial Regulatory Administration, which reported a record 670-plus bank closures in 2025. This has resulted in a 23% decrease in the number of banking entities in China, bringing the total to 3,139.
The closures, primarily in rural areas, have been attributed to low interest rates, deflation, and property slowdowns, which have strained bank profits. The closures are seen as a move towards regulatory simplification and eliminating potential liquidity events among small institutions. Fitch's rating system also highlighted the weak state of small banks in China, particularly in rural and regional city areas, with many struggling due to poor asset quality, low capitalization, and governance issues.
Brief written by urgent.news from PYMNTS's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
