① Currently, 6 agricultural commercial banks are listed on the domestic main board or small and medium board, which is the province with the highest concentration of listed agricultural and commercial banks; ② Except for places such as Liaoning and Hainan, which have adopted the provincial agricultural commercial bank model with a unified corporation, most of them have adopted the joint banking model; ③ data shows that since this year, the agricultural commercial system business in Jiangsu has developed rapidly.
Financial Association, September 11 (Reporter Liang Kezhi) On September 10, the official website of the Jiangsu Rural Credit Cooperatives Association (hereinafter referred to as the Jiangsu Federation) shows that on September 9, the Jiangsu Association held a members' meeting to review and pass proposals such as the “Jiangsu Rural Commercial Joint Bank Co., Ltd.” and decided to establish the Jiangsu Rural Commercial Joint Bank (tentative name) on the basis of the Jiangsu Association.
The announcement stated that it was decided to start the establishment of the Jiangsu Agricultural and Commercial Joint Bank, set up a preparation team, and authorized the preparation team to hire a qualified intermediary agency to carry out work such as clearing capital and asset evaluation for the Jiangsu Association.
According to the official website, Jiangsu Nongxin took the lead in establishing the first agricultural commercial bank in the country and was the first to complete the restructuring of agricultural commercial banks in the province. Currently, 6 agricultural commercial banks are listed on the domestic main board or small to medium board. Including Changshu Bank, Zijin Bank, Bank of Wuxi, Bank of Sunong, Bank of Zhangjiagang, and Bank of Jiangyin, it is the province with the highest concentration of listed agricultural commercial banks.
Following the disclosure of news of the commencement of the establishment of the Jiangsu Rural Commercial Joint Bank, on September 11, the stock prices of the six listed banks mentioned above all fell slightly. By the end of the afternoon session, they had fallen between 0.82% and 1.86%.
A CIFA reporter tried to contact relevant agencies to comment on the matter, but as of press time, no response had been received.
According to public information, the reform of the Jiangsu Provincial Association is one of the first provinces in the country. In June 2003, before the State Council issued the “Notice on Deepening the Reform of Rural Credit Cooperatives”, the Jiangsu Association was established on September 19, 2001, becoming the first provincial association. It has been 14 years since then.
The joint banking model dominates
Jiang Dan, an analyst at Huaxi Securities, believes that there are many factors driving the further reform of the provincial cooperative, including administrative management methods such as personnel appointments and financial approval for agricultural commercial banks, which hinder the independent operation of agricultural commercial banks, and the exploration of “de-administration” in some regions has weakened the management power of the provincial association, which in turn is detrimental to the risk prevention and control of agricultural and commercial banks.
According to public information, currently Henan Agricultural Commercial Joint Bank, Shanxi Agricultural Commercial Bank, and Liaoning Agricultural Commercial Bank have opened one after another. The Sichuan Agricultural Commercial Bank and Guangxi Agricultural Commercial Bank completed listing at the beginning of this year, and the Hainan Agricultural Commercial Bank was inaugurated in May this year.
With the exception of places such as Liaoning and Hainan, which have adopted the provincial agricultural and commercial bank model with a unified corporation, most have adopted the joint bank model.
Tang Yuanmao, an analyst at Guotai Junan, believes that the main purpose of the restructuring of the provincial association is to “adapt to the bank's corporate governance system” and “mitigate bank risks,” and that different restructuring plans also correspond to different restructuring costs, including capital costs and consolidation costs. For most regions, achieving the purpose of restructuring “corporate governance” and “banking insurance” forms an almost impossible triangle with low restructuring costs.
There are different selection models for different regions, and Tang Yuanmao previously predicted that Jiangsu, as a region with generally strong business capabilities and large assets under its jurisdiction, will choose a model combining United Bank (listed below) with some decentralized financial services.
By the end of 2023, the agricultural commercial banking system in Jiangsu Province had 60 agricultural commercial banks and more than 54,000 employees. The total assets of the agricultural commercial banking system in the province were 4.4 trillion yuan, with deposit and loan balances of 3.51 trillion yuan and 2.85 trillion yuan respectively. Both personnel and scale were among the highest among banks in the province.
Under the jurisdiction of six listed banks
According to the official website, Jiangsu Nongxin took the lead in establishing the first agricultural commercial bank in the country and was the first to complete the restructuring of agricultural commercial banks in the province. Currently, 6 agricultural commercial banks are listed on the domestic main board or small to medium board. Including Changshu Bank, Zijin Bank, Bank of Wuxi, Bank of Sunong, Bank of Zhangjiagang, and Bank of Jiangyin, it is the province with the highest concentration of listed agricultural commercial banks.
Following the disclosure of news of the commencement of the establishment of the Jiangsu Rural Commercial Joint Bank, on September 11, the stock prices of the six listed banks mentioned above all fell slightly. By the end of the afternoon session, they had fallen between 0.82% and 1.86%.
According to Wande data, as of September 11, the total market value of the six banks was 62.3 billion. Since the beginning of the year, Changshu Bank and Sunong Bank, which have had high increases, have risen 9.02% and 5.26% respectively.
Tang Yuanmao believes that under the Joint Bank (see above) model and financial service model, it is more helpful to maintain the operational vitality of highly qualified banks in the region. Regions with more developed agricultural cooperation systems, such as Zhejiang and Jiangsu, may be able to sink further.
The data shows that since this year, the agricultural and commercial system in Jiangsu has developed rapidly.
According to the official website of the Jiangsu Provincial Finance Commission, by the end of March, the balance of various deposits of agricultural commercial banks in the province was 3812.38 billion yuan, an increase of 305.45 billion yuan over the beginning of the year, an increase of 8.7%. The total deposit volume surpassed Guangdong, ranking second in agricultural credit in the country. Deposit growth ranked first in the country, an increase of 94.38 billion yuan over Zhejiang, which ranked second in deposit growth.
At the same time, the balance of various loans was 3005.35 billion yuan, an increase of 154.45 billion yuan over the beginning of the year, an increase of 5.4%. The total loan volume and increase ranked second in the country, making it the first banking financial institution in the province to exceed 3 trillion in terms of loan size.
Furthermore, a Financial Services Association reporter noticed that in August, the China Interbank Market Dealers Association launched a self-regulatory investigation against four agricultural commercial banks in Jiangsu: Changshu Agricultural Commercial Bank, Jiangnan Agricultural Commercial Bank, Kunshan Agricultural Commercial Bank, and Suzhou Agricultural Commercial Bank, for suspected misconduct such as manipulating market prices and transfer of benefits in second-tier treasury bond market transactions.