The reform of provincial rural credit cooperatives is progressing steadily. Recently, the Guizhou Regulatory Bureau of the State Financial Supervision and Administration Bureau officially approved the opening of Guizhou Rural Commercial Union Bank Co., Ltd. (hereinafter referred to as "Guizhou Rural Commercial Union Bank"). Guizhou has become the seventh province in China, following Zhejiang, Shanxi, Sichuan, Guangxi, Jiangxi, and Jiangsu, to be approved to establish a provincial-level rural commercial union bank.
A review by the Financial Times revealed that six provincial-level rural commercial banks and joint rural commercial banks had already opened earlier this year. Against the backdrop of ongoing reforms and risk mitigation efforts in small and medium-sized financial institutions, rural finance is rapidly transitioning from isolated efforts to a new stage of collaborative cooperation, fostering the gradual formation of a well-structured, complementary, and competitive rural financial service system.
Guizhou Rural Commercial Bank approved for establishment to address the development dilemma of "small, scattered, and weak" enterprises.
According to the approval information, Guizhou Rural Commercial Bank has a registered capital of 10.458 billion yuan, with four main shareholders: Guizhou Provincial Department of Finance, Guizhou Financial Holdings Group, China Guizhou Moutai Distillery (Group), and Guizhou Qiansheng State-owned Assets Management Co., Ltd. Among them, the largest shareholder, Guizhou Financial Holdings, invested 6.886 billion yuan, holding 65.844% of the shares.
It is noteworthy that the approval emphasizes that on the date of the opening of Guizhou Rural Commercial Bank, the original Guizhou Provincial Rural Credit Cooperative Union (hereinafter referred to as "Guizhou Provincial Union") will automatically terminate, and its rights and obligations will be inherited by Guizhou Rural Commercial Bank.
According to information on the official website of Guizhou Provincial Rural Credit Cooperative Union, Guizhou Rural Credit Cooperative Union consists of the Guizhou Provincial Rural Credit Cooperative Union and its 84 affiliated rural commercial banks (rural credit cooperatives), with a total of 2,293 business outlets and 28,000 employees. It is the largest local banking financial institution in Guizhou Province in terms of asset size, deposit and loan balance, institutional coverage, and number of employees.
As of the end of October 2025, the total assets of Guizhou's rural credit system reached 1.1591 trillion yuan. The newly approved Guizhou Rural Commercial Bank has a registered capital of over 10 billion yuan, significantly enhancing its capital strength and its ability to withstand risks and serve the real economy.
"The core significance of the rural credit cooperative reform lies in breaking the development dilemma caused by the 'small, scattered, and weak' nature of rural credit institutions in the past," said Liu Xuegong, a member of the Party Committee and Vice President of the Inner Mongolia Rural Commercial Bank, which was officially established in May this year. "After the reform, we can concentrate our efforts on major tasks, with more sufficient capital, stronger risk resistance, and more concentrated and intensive resources. Our financial support for the real economy and micro and small enterprises will be more precise, and our financing guarantee for the production and livelihood of farmers and herdsmen will be more effective."
"The ultimate goal of reforming and mitigating risks is to enable small and medium-sized financial institutions to better serve the real economy," Zeng Gang, chief expert and director of the Shanghai Financial and Development Laboratory, told the Financial Times. "During the 14th Five-Year Plan period, with effective risk mitigation and continuous improvement in operational capabilities, small and medium-sized financial institutions have played a vital role in supporting micro and small enterprises, serving agriculture, rural areas, and farmers, and promoting inclusive finance." A number of successfully reformed institutions have regained their vitality and become an important force driving local economic development.
Provincial-level legal entities are being established at an accelerated pace to achieve transformation and development tailored to local conditions.
As the "capillaries" of the financial system, local small and medium-sized financial institutions are directly related to the smooth flow of funds to the real economy. For a long time, some institutions have faced problems such as heavy historical burdens, imperfect corporate governance, and weak risk resistance capabilities. During the 14th Five-Year Plan period, under the leadership of the Party Central Committee, financial management departments adopted resolute measures and precise policies, delivering a solid report card on reform and risk mitigation.
As a key component of the reform efforts, the reform of rural credit cooperatives has progressed steadily and rapidly. Over the past five years, more than half of the provinces have established provincial-level legal entities, enhancing their sustainable development capabilities by streamlining corporate governance structures, strengthening service functions, and preventing and mitigating financial risks.
For the sixth consecutive year, the No. 1 Central Document of 2025 emphasized adhering to the positioning of rural small and medium-sized banks in supporting agriculture and small businesses, accelerating the reform of rural credit cooperatives with "one policy per province", and steadily and orderly promoting the reform and restructuring of village and township banks.
Since the beginning of this year, the reform and risk mitigation efforts of rural small and medium-sized banks have been accelerating. From February to November, six provincial-level rural commercial banks and rural commercial joint banks, including Henan Rural Commercial Bank, Jiangsu Rural Commercial Joint Bank, Jiangxi Rural Commercial Joint Bank, Inner Mongolia Rural Commercial Bank, Jilin Rural Commercial Bank, and Xinjiang Rural Commercial Bank, have opened for business.
In 2024, the Rural Small and Medium-sized Banks Supervision Department of the State Financial Regulatory Commission stated that it supports and cooperates with provincial party committees and governments to promote the reform of rural credit cooperatives with a "one province, one policy" approach. The goal is to transform the provincial federations into financial enterprises with clear property rights, well-defined responsibilities, and standardized management, clarify their functional positioning, standardize their performance of duties, strengthen the economic ties between the two levels of legal entities, and strive to create a rural credit cooperative system that combines centralized and decentralized management, multi-level operation, complementary functions, and effective governance.
In practice, Guizhou chose the "joint bank" model this time. Previously, Zhejiang, Shanxi, Sichuan, Guangxi, Jiangxi, Jiangsu and other places had established provincial-level rural commercial joint banks, while Liaoning, Hainan, Henan, Inner Mongolia, Jilin and other places chose to achieve regional resource integration through the rural commercial bank model with unified legal entities.
"This reform model, tailored to local conditions, takes into account the differences in economic development levels across regions and respects the characteristics of historically formed governance structures," Zeng Gang told reporters. "In the practice of risk mitigation during reform, 'one policy per province' and 'one policy per industry' have become important working methods. This approach reflects the wisdom of governance tailored to local conditions, avoiding a 'one-size-fits-all' approach while ensuring the precision and effectiveness of reforms."
Currently, reforms of provincial credit unions in Hubei, Shaanxi, Gansu, Guangdong, and other regions are also underway. Looking ahead, industry experts believe that it is also necessary to promote the integrated management of risks and the transformation and development of small and medium-sized financial institutions. On the basis of risk resolution, it is essential to transform and improve the governance and operational capabilities of small and medium-sized financial institutions, promote their higher-quality development, and make greater contributions to serving the real economy and promoting economic and social development.
