Finance Ministry Pushes Public-Private Mergers and Digital Overhaul at State-Controlled Financial Firms

The Ministry of Finance is promoting mergers between state-controlled financial institutions and private-sector firms to increase scale and strengthen market competitiveness, provided the state-controlled side retains management control. The policy also covers upgrades to digital finance and cybersecurity, which are critical to the banks’ long-term operating efficiency and the resilience of financial services.

Under the ministry’s latest plan, state-controlled banks must complete the digital transformation of their core systems and operating platforms by the end of 2027 and expand their use of AI. Salary and benefits structures will also be adjusted to attract digital finance and cybersecurity talent. No merger targets, transaction values or formal launch date have been disclosed.