China closed over 670 banks in 2025, according to data from the National Financial Regulatory Administration. This move follows a broader trend of consolidation, resulting in a 23% reduction in the total number of banking entities over the past four years. Currently, there are 3,139 banking institutions operating within the country.
The closures primarily affected rural areas, where small lenders have faced pressure from deflation, low interest rates, and a slowdown in the property sector. Experts note that the consolidation aims to simplify regulations and mitigate liquidity risks among smaller financial institutions. Fitch Ratings reports that these small banks often struggle with poor asset quality and governance.
Separately, major Wall Street banks are increasing their recruitment of artificial intelligence specialists. JPMorgan Chase, Citigroup, and Capital One saw a 49% rise in AI-related job postings this year, reaching a total of 139,819. Banks are shifting their focus from simple chatbots toward the development of AI agents for trading, compliance, and back-office tasks.
This hiring surge coincides with a regulatory shift in the United States. New guidance issued on April 17 by the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp. replaced the 2011 framework. The updated rules exclude generative and agentic AI from their scope, allowing banks to manage these technologies through internal risk practices.
