Since 2026, the restructuring and integration of domestic rural banks have witnessed a notable acceleration. According to statistics, as of July 9, approval has been granted for 134 rural banks to withdraw this year, bringing the total number down to 1,048 and continuing the trend of accelerated liquidation observed since 2025. Industry experts have noted that the county-level financial ecosystem is undergoing a transformation, and a reduction in the number of rural banks is expected to enhance the quality and efficiency of financial services at the county level. Data from the National Financial Regulatory Administration reveals that a record 310 rural banks exited in 2025. In 2026, an average of over 20 rural banks underwent restructuring or dissolution each month. This trend has been facilitated by consistent guidance from top-tier policies, such as those issued by the former China Banking and Insurance Regulatory Commission in 2020, which established a clear policy framework for the restructuring and mergers and acquisitions of rural banks. The 2026 government work report also integrated the promotion of risk resolution for local small and medium-sized financial institutions into the broader planning of development and security initiatives.

During the reform process, joint-stock banks and urban and rural commercial banks have demonstrated significant activity. China Everbright Bank has finalized the liquidation of all its rural banks, Shanghai Pudong Development Bank has progressed with the integration of 12 of its rural banks, leaving only 4 in regular operation, and Shanghai Rural Commercial Bank has also initiated the year's first rural bank integration project. The reforms of "rural bank-to-branch" and "rural bank-to-sub-branch," advocated by the main sponsor banks of rural banks, aim to tackle the issue of diminished control due to excessively long management chains in the past.

However, the integration process encounters numerous challenges, including consolidated pressure on asset quality, difficulties in managing existing non-performing assets, and complex personnel placement issues. Despite these hurdles, industry experts maintain that the structural restructuring of rural banks necessitates customized strategies to avoid a one-size-fits-all approach, with ongoing attention and effective resolution of issues that arise during the integration process. For financial institutions that have completed integration, after shedding historical burdens and receiving support from the main sponsor banks, they are expected to be better positioned to focus on their core businesses and serve local communities more effectively.