China is accelerating its consolidation of smaller, mostly rural banks in a bid to shore up its financial system, amid ongoing concerns over an economic slowdown in the country. Beijing’s policy-led consolidation saw a record 670 lenders closed in 2025 — about one-quarter of banks in the country — as authorities ramped up mergers and dissolutions to create fewer, larger and better-capitalized institutions, according to
Fitch Ratings analysis.
