According to the 21st Century Business Herald (December 28), bank outlets in China have been shrinking
rapidly. Based on the China Banking and Insurance Regulatory Commission’s statistics, as of December 24,
2021, a total of 2,459 bank outlets of commercial banking institutions ceased operations this year. On
December 24, 2021, alone, 29 commercial bank outlets closed their doors. The 21st Century Business Herald
attributed the closures to the rapid development of digital technology. Statistics from the China Banking
Association show that, from 2018 to 2020, the number of outlets in the Chinese banking industry declined
for three consecutive years, and the number of outlets that closed last year also approached 3,000. These
closures include many outlets that had been in business for more than 30 years. Semi-annual reports of banks
also show signs of the decline of outlets. In the first half of 2021 alone, the four major state-owned
commercial banks, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank
of China, and the Construction Bank, reduced 187 outlets or branches. Behind the dramatic reduction in
outlets comes the downsizing of bank staff. Comparing the data from the 2021 semi-annual and 2020 annual
reports, the number of employees in the four major state-owned commercial banks decreased by 22,355 in
the first half of 2021. The 21st Century Business Herald said that, along with the outlet closures, the ability
of banks to absorb deposits has declined significantly. At the same time, office rent, labor, and IT hardware
maintenance have also risen due to competition, adversely impacting the profitability of bank branches.
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