Business
UNDERREPORTED
China shuts record 670 banks as growth slows and de-risking intensifies
China closed 670 banks last year, nearly a quarter of all lenders, as authorities push de-risking amid a slowdown in economic growth.
The closures focused mainly on rural banks, which regulators say suffer from weak asset quality, low capital and governance flaws. Analysts argue the move aims to prevent liquidity problems at small institutions and to remove constraints on the broader financial system. The bank shutdowns come as China’s growth has fallen short of expectations, partly due to sluggish consumer spending.
Why it matters
The bank closures signal a major shift in China’s financial policy and could affect credit availability and economic stability.
In this story
Chinabank closuresrural banksde-riskingeconomic slowdownliquidity riskasset qualityfinancial system
