Approved and Opened! The First Provincial Rural Commercial Bank Established This Year Has Arrived

Registered capital exceeds 40 billion yuan. The first provincial rural commercial bank established this year has been approved to open.

On March 20, the Gansu Regulatory Bureau of the China Banking and Insurance Regulatory Commission approved the opening of Gansu Rural Commercial Bank Co., Ltd. (hereinafter referred to as “Gansu Rural Commercial Bank”) and its branches.

According to reports from the International Finance News, Gansu Rural Commercial Bank’s reform adopts a “step-by-step” strategy. The number of institutions merged this time accounts for about two-thirds of the total rural credit institutions in the province. The remaining institutions will be further merged in subsequent steps. From a reform model perspective, it has transitioned from a joint bank to a unified legal person provincial rural commercial bank.

Experts interviewed pointed out that the unified legal person model for provincial rural commercial banks helps concentrate resources, improve management efficiency and execution, build brand image, and create scale advantages. There is no inherent advantage or disadvantage between different reform models and plans. Local governments should choose the most suitable reform approach based on actual circumstances and local financial capacity.

40 Days to Establish, Creating “Gansu Speed”

From approval to establishment, Gansu Rural Commercial Bank took just over a month.

The International Finance News noted that the AiQiCha app shows that Gansu Rural Commercial Bank was established on March 17, 2026, with 64 branches and a registered capital of 44.919 billion yuan.

Its main shareholders include Gansu Financial Holding Group, Gansu Energy and Chemical Investment Group, Gansu State-owned Assets Investment Group, and other local state-owned enterprises. From the management team, the legal representative and chairman, Wang Wenyong, was previously the Party Secretary and Director of the Gansu Provincial Federation of Rural Credit Cooperatives.

According to the announcement from the China Banking and Insurance Regulatory Commission, on February 9, this year, Gansu Rural Commercial Bank was approved for preliminary establishment. Regulatory requirements stipulate that the preparatory work should be completed within six months from the date of approval, and after completion, an application for opening should be submitted to the Gansu Financial Regulatory Bureau in accordance with relevant regulations and procedures.

“As the first provincial rural commercial bank registered and established in 2026, under efficient coordination between central and local authorities, Gansu Rural Commercial Bank took only 40 days from approval to official launch, setting a record for this round of rural credit cooperative reform—the ‘Gansu Speed.’ In terms of registered capital, Gansu Rural Commercial Bank’s capital strength is second only to Inner Mongolia Rural Commercial Bank and will further grow,” said Dong Ximiao, Chief Economist at Zhaolian and Deputy Director of the Shanghai Financial and Development Laboratory. “Additionally, Gansu Rural Commercial Bank’s reform adopts a ‘step-by-step’ approach. The number of merged institutions this time accounts for about two-thirds of the total rural credit institutions in the province, with remaining institutions merging in subsequent steps.”

As of March 2026, 14 provinces nationwide have completed the establishment of provincial rural credit institutions. Among them, seven provinces (Zhejiang, Shanxi, Sichuan, Guangxi, Jiangsu, Jiangxi, Guizhou) adopted a provincial rural joint bank model, while seven provinces (Liaoning, Henan, Inner Mongolia, Hainan, Jilin, Xinjiang, Gansu) adopted a unified legal person provincial rural commercial bank model.

2025 was a key year for accelerating reforms, with seven new provincial rural credit institutions established that year. In 2022, 2023, and 2024, one, two, and three institutions were established respectively.

Additionally, Guangdong, Hubei, Shaanxi, Hunan, Anhui, Yunnan, Ningxia, Heilongjiang, and other regions have clarified reform directions and entered substantive implementation stages.

Continued Speeding Up of Provincial Federation Reform

From a model perspective, Gansu Rural Commercial Bank has transitioned from a rural commercial joint bank to a unified legal person provincial rural commercial bank.

In 2023, the Gansu Provincial Government Work Report listed “orderly advancing risk mitigation for high-risk institutions, prudently promoting rural credit cooperative reform, and establishing Gansu Rural Commercial Joint Bank” as a key task for the year.

In 2024, Gansu did not explicitly mention establishing a provincial institution but emphasized the need to steadily promote rural cooperative institution reform, accelerate resolving historical issues of small and medium financial institutions, and use development-oriented methods and reform measures to orderly exit high-risk institutions, aiming to recover and dispose of about 45 billion yuan of non-performing assets.

In 2025, the provincial government work report did not include related statements, but many local rural credit institutions mentioned cooperating with the preparatory work for Gansu Rural Commercial Bank during their annual meetings. In 2026, “consolidating the results of small and medium financial institution reform and establishing and operating Gansu Rural Commercial Bank” was again included as a key task.

“Having a unified legal person model for provincial rural commercial banks helps concentrate resources, improve management and execution, build brand image, and create scale advantages. There is no inherent superiority between different reform models and plans. Local governments should choose the most suitable approach based on actual conditions and financial capacity. During reform, the focus and sequence of reforms may vary across regions,” Dong Ximiao pointed out.

Notably, entering 2026, several regions have announced new developments in provincial federation reforms.

For example, the Yunnan Provincial Government Work Report proposed to “prudently and orderly establish Yunnan Rural Commercial Bank.” The Heilongjiang Provincial Federation of Rural Credit Cooperatives mentioned in its New Year message that in 2026, it will “take the establishment of provincial rural commercial banks as an opportunity, serve the comprehensive revitalization of Heilongjiang, focus on main responsibilities, and continue strengthening rural, inclusive, and green finance.”

Analyst Zhang Yiwei from China Galaxy Securities noted in a research report that government work reports regulate competition among financial institutions and promote the reduction and quality improvement of local small and medium financial institutions. This includes enhancing risk disposal resources and methods for local small and medium financial institutions, orderly handling high-risk institutions, increasing capital through multiple channels, and prudently disposing of non-performing assets. In 2025, mergers and reorganizations of small and medium financial institutions will accelerate, with rural credit cooperatives reform and village and township bank integration becoming mainstream, and state-owned banks beginning to participate—fundamentally improving regional financial ecosystems and enhancing the corporate governance and risk resistance of small and medium-sized banks.