As top-level design becomes more and more perfect, risk mitigation efforts of small and medium-sized financial institutions continue to be strengthened. Since this year, small and medium-sized banks have been intensively approved to increase capital and expand their shares, reflecting a reform idea that places equal emphasis on risk mitigation and transformation and development. The 2025 government work report proposed “promoting risk management, transformation and development of local small and medium-sized financial institutions in an integrated manner”, and also mentioned various specific ways to mitigate risks, such as supplementary capital, mergers and restructuring, and market exit. Dong Ximiao, chief researcher at the China Recruitment Federation and deputy director of the Shanghai Financial Development Laboratory, believes that the emphasis on “integrated promotion” not only reflects the importance the country attaches to mitigating the risks of small and medium-sized financial institutions, but also highlights the importance of the transformation and development of small and medium-sized financial institutions.

As top-level design becomes more and more perfect, risk mitigation efforts of small and medium-sized financial institutions continue to be strengthened. Since this year, small and medium-sized banks have been intensively approved to increase capital and expand their shares, reflecting a reform idea that places equal emphasis on risk mitigation and transformation and development. The 2025 government work report proposed “promoting risk management, transformation and development of local small and medium-sized financial institutions in an integrated manner”, and also mentioned various specific ways to mitigate risks, such as supplementary capital, mergers and restructuring, and market exit. Dong Ximiao, chief researcher at the China Recruitment Federation and deputy director of the Shanghai Financial Development Laboratory, believes that the emphasis on “integrated promotion” not only reflects the importance the country attaches to mitigating the risks of small and medium-sized financial institutions, but also highlights the importance of the transformation and development of small and medium-sized financial institutions.