China Merges Small Banks with Bigger Ones as Temporary Solution to Looming Financial Crisis

People hold banners and chant slogans during a protest at the entrance to a branch of China's central bank in Zhengzhou in central China's Henan Province, on July 10, 2022, when four rural banks in the Henan Province stopped allowing customers to withdraw cash since April 2022. Yang/AP Photo

The Chinese authorities are currently accelerating the consolidation and merger of small and medium-sized financial institutions in an attempt to mitigate the impact of a potential financial crisis.

An analyst pointed out that if the bank failure continues, the interests of a large number of people will be jeopardized and they will demand compensation for their losses, which will definitely affect the stability of the Chinese Communist regime.