Wire flash
Small Banks Reduce Cross-Region Deposits Quarterly, Aim to Clear by End-2027
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
According to a report by Jin10 Data on September 24, some local small banks in China are actively reducing their existing cross-regional deposits. A private bank insider stated that the bank is currently reducing provincial deposits on a quarterly basis while increasing local deposits, with a plan to fully eliminate cross-regional deposits by the end of 2027. In July, regulatory guidance was issued to some local commercial and private banks, defining local customer criteria: at least three of five factors (ID address, residence, main business location, mobile number location, and device location) must match. The guidance also prohibits new cross-regional business and requires all existing business to be settled by the end of 2027 without extension or restructuring. A bank insider clarified that this requirement applies to both loan and deposit businesses. The regulator has allowed a natural phase-out of existing cross-regional deposits with a sufficient transition period, rather than imposing a blanket ban.
Source report
September 24 (Jin10 Data) — Some local small banks are steadily reducing their existing cross-region deposit portfolios.
"We are basically reducing inter-provincial deposits on a quarterly basis while increasing deposits within the province," said an insider at a private bank. The bank plans to gradually phase out cross-region deposits, with full completion targeted by the end of 2027.
In July, certain local commercial banks and private banks received regulatory guidance that clarified the criteria for identifying local customers. Under the new rules, at least three of the following five elements must match:
- ID card address
- Place of residence
- Primary business location
- Mobile number归属 area
- Device location positioning information
Additionally, regulators required that relevant banks must not initiate new cross-region business. All existing cross-region business must be fully settled by the end of 2027, with no extension of maturity dates permitted through rollovers or restructuring.
"This requirement applies not only to loan business but also to deposit business," said a bank insider. The regulator has not adopted a "one-size-fits-all" approach, but instead requires the natural digestion of existing cross-region deposits, providing a sufficient transition period.
(Source: Shell Finance)
Source
金十数据Eastern
Part of this Story
China tightens local-only rules; small banks must phase out cross-region deposits by 2027