A pivotal approval has been granted, marking a critical step in the deep integration of Jiangxi's rural credit system reform.
The Jiangxi branch of the National Financial Regulatory Administration recently issued approval for Jiangxi United Rural Bank to invest up to 2.20475 billion yuan in acquiring stakes in 19 rural commercial banks across the province, including Shangrao and Guangxin, with each holding no less than 5%.
Industry experts view this "bulk equity participation + key minority stake" strategy as a way to embed provincial-level strategic guidance into core rural banks through capital linkages. This signals that the provincial credit union reform has progressed from a "physical restructuring" of top-level frameworks to a new phase of "chemical transformation" aimed at reshaping micro-level governance foundations.
In fact, preparations for this move began earlier. In August this year, multiple rural commercial banks in Jiangxi held shareholder meetings to deliberate on proposals related to Jiangxi United Rural Bank's acquisition of existing shares.
As the main entity in this initiative, Jiangxi United Rural Bank itself is a product of the ongoing rural credit system reform. Established through the restructuring of the former Jiangxi Rural Credit Union, it officially commenced operations on April 17, 2025. Its functional positioning emphasizes strengthening Party leadership, standardizing equity relationships, providing industry services, and enhancing risk management under the guidance of the provincial government.
The stipulation of "no less than a 5% stake" in the approval document carries significant implications. While this proportion does not grant absolute control, it ensures that Jiangxi United Rural Bank becomes a key strategic investor and influential shareholder in each rural bank. A senior banking analyst likened this to installing a "governance stabilizer" for these institutions.
The analyst noted that some grassroots rural banks have long faced issues such as dispersed equity ownership and irregular shareholder behavior, which have impacted governance efficiency and long-term strategic stability. By acquiring a moderate yet stable stake, the provincial united bank can establish effective checks and balances at shareholder and board levels, mitigating risks of undue interference by major shareholders while promoting a clear division of responsibilities to refine corporate governance structures.
Comparatively, the Shanxi branch of the National Financial Regulatory Administration previously approved Shanxi United Rural Bank's acquisition of a 93.2% stake in Qingxu Rural Bank, representing a different model of majority control. Meanwhile, Zhejiang United Rural Bank, which initiated reforms earlier, adopted a distinct approach to equity penetration but shares the same goal of strengthening a "small legal entity, large platform" framework to enhance systemic synergy—similar to Jiangxi and Shanxi.
Analysts suggest these cases collectively demonstrate that transforming loosely connected industry alliances into equity-linked interest communities has become a core path for deepening rural credit system reforms. The aim is to solidify the foundation for integrated provincial rural credit development at the property rights level.
Beyond optimizing equity structures, Jiangxi United Rural Bank's bulk equity participation holds deeper significance. It provides a solution to challenges such as resource constraints, risk management difficulties, and diseconomies of scale faced by individual rural banks. This "capital linkage" will serve as a conduit for transferring resources, standards, and capabilities, potentially generating synergistic effects where "1+1>2" in boosting the overall competitiveness of the provincial rural credit system.
First, resource synergy is expected to be significantly enhanced. As a provincial platform, Jiangxi United Rural Bank can leverage equity relationships to facilitate the sharing of technology systems, product development, talent training, branding, and centralized procurement across the province.
For instance, while standalone county-level rural banks find it costly and impractical to independently develop advanced IT systems or invest heavily in fintech innovation, the united bank's unified planning and output can substantially reduce operational costs for member banks. This allows them to focus resources on localized, specialized customer services, achieving economies of scale and improving efficiency and service quality province-wide.
Jiangxi United Rural Bank oversees 85 legal rural banks, over 2,200 branch outlets, and 25,000 employees. As of the end of September 2025, its total assets reached 1.4 trillion yuan, with deposits at 1.18 trillion yuan and loans at 948.1 billion yuan, making it the largest local financial institution in the province by coverage and scale. Its substantial size grants it significant potential and advantages in resource integration.
Second, systemic risk resilience will be strengthened. Given that finance inherently deals with risk management, rural banks serving county-level "agriculture, rural areas, and farmers" as well as small and micro enterprises must prioritize risk control. The provincial united bank can leverage its expertise and resource integration capabilities to implement standardized risk management systems and early warning mechanisms across its equity partners, enhancing oversight of credit approval and post-loan management processes. This not only improves individual institutions' risk identification and control but also bolsters the entire rural credit system's ability to mitigate regional or systemic risks, creating a stronger regional financial safety net.
The approval also requires Jiangxi United Rural Bank to ensure the legality and compliance of funding sources and subsequent equity changes, reflecting regulators' emphasis on risk control during reforms.
As reforms in Jiangxi and other regions advance, this capital-linked model—aimed at improving governance and synergy—will serve as a valuable reference for rural credit reforms nationwide. The ultimate goal is to build a modern rural financial service system that retains the "small, agile, and responsive" characteristics of county-level legal entities while leveraging a large platform for robust support, injecting stronger financial vitality into high-quality local economic development.
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