Analysis of Synergies from Jiangnan Rural Commercial Bank's Acquisition of Qidong Zhujiang Rural Bank

According to industry data found, the merger and restructuring of rural banks in China will show an accelerating trend in 2025. Statistics show that the number of rural banks exiting increased from 8 in 2022 to an estimated 226 in 2025, a significant increase [1]. In this round of rural bank integration wave, rural commercial banks have become the main acquirers, accounting for 58.63% [1].

As a regional rural commercial bank, Jiangnan Rural Commercial Bank’s acquisition of Qidong Zhujiang Rural Bank is an important measure to comply with regulatory policy guidance and optimize resource allocation.

: Qidong Zhujiang Rural Bank’s local network resources can provide channel supplements for Jiangnan Rural Commercial Bank, improving customer reach capability. Cross-regional business expansion has become an important consideration for this acquisition [1].

: Through the acquisition, the existing customer base of the rural bank can be directly obtained, reducing customer acquisition costs and realizing cross-selling opportunities.

: After the merger, asset scale can be expanded, which helps to enhance bargaining power in the interbank market and reduce capital costs.

: Operational costs can be diluted through back-office system integration, technology platform sharing, etc.

: Rural banks generally face non-performing loan pressure; through mergers and acquisitions, asset quality can be improved by leveraging the risk management capabilities of the main sponsor bank.

1. Cultural Integration
   : There are differences in management culture between rural banks and the parent bank
2. System Docking
   : IT system integration requires significant investment
3. Staff Placement
   : Employee integration involves proper handling of labor relations

Jiangnan Rural Commercial Bank’s acquisition of Qidong Zhujiang Rural Bank has certain synergy potential in business expansion, scale effect, and risk sharing, but the actual effect depends on the quality of integration execution and the continuity of regulatory policies. In the current context of rural bank mergers and restructuring, such mergers and acquisitions help to optimize the allocation of industry resources, but attention should be paid to integration costs and the pace of synergy effect realization.

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[1] Southern Finance - Special Chart on Rural Bank Merger and Restructuring (https://nfassetoss.southcn.com/__asset/12192f7e6a/3ffc2f8046.jpg)