Another province has altered its course for rural credit cooperative reform. Recently, Gansu Province explicitly stated in its 2026 government work report the plan to "establish and operate Gansu Rural Commercial Bank," signaling a formal departure from the previously planned rural commercial joint bank model towards a reform path centered on a unified provincial-level legal entity.
The primary distinction between a rural commercial joint bank and a provincial rural commercial bank lies in whether the legal status of grassroots institutions is retained. Relevant analysts point out that reforming rural credit cooperatives is a key focus of risk mitigation and reform for small and medium-sized financial institutions. This shift in reform direction reflects both practical considerations during implementation in some provinces and ongoing exploration and adjustment in the top-level design and model selection of the current round of rural credit cooperative reforms.
Gansu's official announcement marks a pivot from the joint bank model to a unified provincial legal entity. As a significant agricultural province in northwest China, the Gansu rural credit system is a major force supporting agriculture and small businesses locally, making its reform动向 closely watched by the market. Reviewing the timeline reveals a clear shift in Gansu's reform path.
In 2023, the Gansu provincial government work report explicitly called for "steadily advancing rural credit cooperative reform and establishing Gansu Rural Commercial United Bank." Under this plan, the province aimed to build a two-tier legal entity system comprising a "provincial association + county-level legal entity institutions," maintaining the independent legal status of grassroots institutions, which aligned with the joint bank model being explored by many regions at the time.
However, over the next two years, the Gansu government work reports did not mention the "joint bank preparation," indicating a quiet adjustment in direction. By 2025, multiple rural credit institutions within Gansu explicitly stated in their annual work conferences that they would "actively cooperate in preparing for the establishment of Gansu Rural Commercial Bank." In August of the same year, Jinchang Rural Commercial Bank and Yongchang Rural Commercial Bank successively held shareholder meetings, reviewing and approving matters related to the formation of Gansu Rural Commercial Bank, signaling the gradual implementation of the reform shift. The 2026 government work report's official announcement to "establish and operate Gansu Rural Commercial Bank" marks the first time the provincial level has clearly indicated that rural credit reform has entered a new stage of a "unified provincial legal entity," completing a crucial shift in the reform路线.
In terms of institutional scale and business structure, the Gansu rural credit system holds a pivotal position in local finance. Currently, the system comprises 37 rural commercial banks, 5 rural cooperative banks, and 41 county-level associations. The outstanding balances of agricultural loans and farmer loans reach 259.9 billion yuan and 207.5 billion yuan, accounting for 32% and 65% of the respective totals among Gansu's banking institutions. The total loan balance is 73.1 billion yuan, representing 34% of the banking institutions in Gansu.
Simultaneously, the Gansu rural credit system faces practical pressures, including uneven asset quality and significant historical burdens. From 2019 to 2021, the non-performing loan ratio of Gansu's banking institutions exceeded 6% for three consecutive years, with prominent risks in some county-level rural credit institutions. To mitigate risks and replenish capital, Gansu issued special bonds for supporting small and medium-sized bank development totaling 12.6 billion yuan in 2021 and 30 billion yuan in 2022, injecting capital into 58 rural cooperative institutions and the provincial association to enhance risk resilience. Against this backdrop, opting for the unified legal entity model, which is more conducive to concentrating resources and coordinating risk resolution, became a key practical motivation for Gansu's reform shift.
Comparing the two models, the rural commercial joint bank retains a multi-level legal entity governance structure, avoiding friction generated during the reorganization and integration of rural cooperative institutions. In contrast, establishing a provincial unified legal entity rural commercial bank requires merging through new establishment or absorption, altering the original two-tier legal entity structure, and integrating existing county-level institutions into a single legal entity. This aids in concentrating regional financial resources and forming economies of scale. Neither model is inherently superior; the core lies in matching the actual conditions of local rural credit institutions and the needs of risk resolution.
Prior to Gansu, Henan and Xinjiang also experienced shifts in their rural credit reform paths.
In November 2022, Henan Province proposed establishing "Henan Rural Commercial United Bank," a reform plan approved by the former China Banking and Insurance Regulatory Commission (CBIRC). On November 7, 2023, Henan Rural Commercial United Bank was officially inaugurated. However, less than a year after its launch, in July 2024, Henan changed its provincial association reform model, announcing a plan to "advance the establishment of Henan Rural Commercial Bank," aiming to create a unified provincial-level rural commercial bank legal entity. In February 2025, Henan Rural Commercial Bank was officially launched.
Xinjiang's reform adjustment was similarly clear. In early 2023, relevant officials from Xinjiang Rural Credit indicated plans to establish Xinjiang Rural Commercial United Bank. Subsequently, the reform direction gradually adjusted. The 2025 Xinjiang government work report listed "actively preparing for the establishment of Xinjiang Rural Commercial Bank" as a key task, clearly shifting towards the unified legal entity model.
Analysis suggests that due to inherent institutional shortcomings in rural credit cooperatives, a lack of legal and regulatory support and constraints for reforms, and mismatches between property rights and control rights leading to issues in management systems and mechanisms, problems have emerged during the reform process. These include unclear positioning and insufficient functionality of provincial associations, unresolved equity relationships, and inadequate corporate governance. The core issues in the current rural credit cooperative reform primarily revolve around four aspects: first, advancing the reform of the property rights system; second, rationalizing the management system; third, improving the corporate governance of rural credit institutions; and fourth, establishing sound risk-bearing mechanisms.
It is further noted that rural credit cooperative reform is a focal point for risk mitigation and reform of small and medium-sized financial institutions. In this round of reforms, some provinces have experienced issues such as inadequate top-level design and insufficient prior research and planning, leading to反复 and折腾 during the process. The反复 in provincial association reform models is seen as one consequence of the lack of top-level design in this round of reforms.
Guided by the principle of "one province, one policy," the reform of provincial rural credit associations nationwide is accelerating. By early 2026, 13 provinces had completed their provincial association reforms. Throughout 2025, seven new provincial-level rural commercial banks or united banks were inaugurated, forming a landscape where two mainstream models operate in parallel.
Regarding the reform models adopted, six regions—Liaoning, Hainan, Henan, Inner Mongolia, Jilin, and Xinjiang—have chosen the unified legal entity rural commercial bank model. Conversely, seven regions—Zhejiang, Shanxi, Guangxi, Jiangsu, Guizhou, Sichuan, and Jiangxi—have adopted the provincial rural commercial united bank model.
Among provinces that have not yet completed reforms, Shaanxi, Guangdong, Hebei, Yunnan, Ningxia, and Heilongjiang have indicated plans to establish provincial rural commercial united banks. While provinces such as Shandong, Anhui, Fujian, Qinghai, and Tibet have not announced specific models, they have all emphasized deepening rural credit system reform and promoting quality improvement and risk mitigation for small and medium-sized financial institutions in their government work reports. However, industry sources indicate that Shandong Province has submitted a plan to establish a rural commercial united bank, awaiting regulatory approval.