The People's Bank of China in Beijing
A provincial arm of one of China’s big-four state banks has taken a decision to close at least 10% of its branches, as coronavirus tightens its grip on Asia’s largest economy, Euromoney has learned.
The individual, a senior executive at the state-run lender, does not work in Wuhan, the capital of central Hubei province where the initial outbreak occurred, but in a well-developed part of the mainland far from its epicentre.
That fact and the decision to close hundreds of branches – the lender in question has thousands nationwide - suggest that a large number of branches in China are being quietly shuttered, and that Beijing is happy for now to step back from decision-making and give provincial officials a greater measure of rope.
“The aim may be to give branch managers more freedom to do what they want,” said a well-informed source.
Beijing’s financial sector is facing a triple hit from a slowing economy, deteriorating asset quality and now a pandemic that shows no sign of abating.
