China’s banking shake-up: 670 lenders vanish as Beijing moves to contain financial risks
In 2025, China saw 670 banks close as Beijing accelerated mergers and closures to consolidate its banking sector. This represented about one-quarter of the country's banks, with a focus on improving oversight and creating stronger institutions amid rising financial risks. The trend highlights the vulnerabilities of rural banks, which are burdened by bad loans and governance issues.