China shuts a record 670+ banks in a year (opens the source in a new tab)
- Banking entities fell 23% in four years to 3,139 by 2025; almost all closures were rural lenders.
- Fitch calls small rural and city banks the system’s weakest part: poor assets, thin capital, weak governance.
- Wuhan took over Z-Bank in July, the first such takeover since 2019.
- 670+
- closures last year
- 3,139
- banking entities left
- $64tn
- banking-system assets
Why it matters Beijing is pruning weak banks before they turn into bank runs.
Other side One researcher notes the worst banks were often left out of mergers. Is this a cleanup, or just a reshuffle?