Zhongyuan Bank, a lender based in China’s Henan province, is set to acquire three other local banks amid growing calls for consolidation to increase resiliency of the sector.
The lender will buy Bank of Luoyang, Bank of Pingdingshan and Bank of Jiaozuo China Travel Services, Reuters reported citing a stock exchange filing.
Go deeper with GlobalData
The deal is yet to be finalised. Other details of the transaction were not immediately available.
Among the three, Bank of Luoyang was named among the 20 main banks for the cash-strapped property developer Evergrande.
Once complete, Zhongyuan Bank will seek to expand its operations and support the development of the province with its services.
Notably, the lender was itself created in 2014 by combining 13 smaller banks in Henan.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataChina is working to stabilise the financial sector following the impact of the Covid-19 pandemic.
Earlier this year, the Asian giant decided to bring all its 4,024 banks under the stress test programme due to increase in debt levels. Last year, the programme included 1,550 banks.
It has also asked smaller and local lenders to ramp up risk management and strengthen supervision.
Recently, China released a list of 19 systematically important banks, which will be subjected to tighter regulations. The move was taken to prevent major financial crisis in the country.
The list includes six state-owned commercial banks, nine joint-stock banks and four urban commercial lenders.
