China closed more than 670 banks in 2025, a record, FT reports
Version 2: A second official outlet, RIA Novosti, has now reported the closures and specifies that they took place in 2025, a year the earlier version's official report did not give.
In short
China closed more than 670 banking institutions, mainly small regional banks, in 2025, a record according to official data from the National Financial Regulatory Administration cited by the Financial Times and reported by Kommersant. TASS reported that 670 banks were closed in China over a year, and RIA Novosti said more than 670 were closed in 2025, citing media reports. Citing the rating agency Fitch, Kommersant said the closures cut the total number of banks in China to 3,139, 23% fewer than in 2021, and that experts link the consolidation to tighter supervision as growth slows, with low interest rates and deflation adding pressure amid a property downturn.
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China closed more than 670 banking institutions, a record, according to official data from the National Financial Regulatory Administration cited by the Financial Times and reported by Kommersant. TASS reported that 670 banks were closed in China over the course of a year. RIA Novosti reported that China closed more than 670 banks in 2025, attributing the figure to media reports. [ 1 , 2 , 3 ]
The closed institutions were mainly small regional banks, Kommersant reported. Citing the rating agency Fitch, it said the closures reduced the total number of banks in China to 3,139, which it described as 23% fewer than in 2021. [ 1 ]
Experts surveyed by the Financial Times said the closures were part of tighter supervision of small credit institutions amid slowing economic growth, Kommersant reported. Low interest rates and deflation in China are also putting pressure on banks, it said, against the backdrop of a prolonged downturn in the real estate sector. [ 1 ]
Fitch said small banks in China “remain the weakest link in the system, characterised by low asset quality, low capitalisation and shortcomings in governance, especially in less developed regions”, according to Kommersant. [ 1 ]
Kommersant's headline framed the closures as a step to strengthen the financial system, while TASS and RIA Novosti reported only the number of closures, with RIA Novosti attributing the figure to media reports. None of the documents names the individual institutions closed or includes a comment from Chinese regulators or from the banks involved. [ 1 , 2 , 3 ]
Why it matters
The reported closures are presented as part of a consolidation of China's banking sector and tighter supervision of small lenders, with the scale of the change measured by the drop in the number of banks. Because the figure comes from Chinese regulatory data and is carried by both a business outlet and Russian state news agencies, it signals a structural shift rather than an isolated event. The documents do not assess the effect on depositors, borrowers or the wider economy.
Key facts
- More than 670 banking institutions were closed in China, a record according to the official data cited. [ 1 , 2 , 3 ]
- RIA Novosti reported that the closures took place in 2025, attributing the figure to media reports. [ 3 ]
- TASS reported that 670 banks were closed in China over the course of a year. [ 2 ]
- The closed institutions were mainly small regional banks, according to Kommersant's account of the Financial Times report. [ 1 ]
- Fitch estimates the total number of banks in China fell to 3,139, which Kommersant said is 23% fewer than in 2021. [ 1 ]
- Experts surveyed by the FT said the closures were part of tighter supervision of small credit institutions as economic growth slows. [ 1 ]
- Fitch said small banks in China remain the weakest link in the system, with low asset quality, low capitalisation and governance shortcomings, especially in less developed regions. [ 1 ]
Confirmed by several sources
Still unclear
- Whether the closures cover the 2025 calendar year or a rolling twelve-month period. RIA Novosti says 2025, Kommersant (published in October 2026) says “last year”, and TASS says only that the closures happened over a year; no document gives precise start and end dates.
- The total number of banks in China, put at 3,139. This is a Fitch estimate reported by a single outlet, not an official figure, and the other two documents do not mention it.
- Whether Chinese regulators or the banks involved have commented, and which individual institutions were closed. No document includes a statement from the authorities beyond the official data cited, and none names the institutions.
What local media are saying
Timeline, local time
- Kommersant publishes its account of the Financial Times report on the closure of more than 670 banks in China, citing Chinese regulatory data and Fitch estimates (October 4). [ 1 ]
- TASS reports that 670 banks were closed in China over a year (October 5). [ 2 ]
- RIA Novosti reports that China closed more than 670 banks in 2025, citing media reports (October 5). [ 3 ]