China pushes for more bank mergers to make financial sector shockproof

China pushes for more bank mergers to make financial sector shockproof

Sweeping consolidation expected to accelerate as Beijing tries to better equip institutions to weather crisis

China is accelerating its efforts to build a series of giant banks and brokers, as part of a campaign to consolidate the financial sector and make it more resilient to economic crises.According to data from China's National Financial Regulation Administration, almost one in every twenty rural banks in the country closed their doors in the past year, as part of a deep restructuring of the banking sector after a prolonged real estate crisis.On the…

China accelerates banking merger efforts to establish global giants

China is ramping up efforts to consolidate its financial industry through mergers to set up “giant” banks and brokerages, reported Financial Times (FT).  Approximately one in 20 of China’s rural banks have closed over the past year, as reported by the National Financial Regulatory Administration, amid a major overhaul of the banking industry following a prolonged property market crisis.  The consolidation effort seeks to streamline China’s tradi…