China closes record 670 banks to stabilise financial system

China shuttered more than 670 lenders last year, a record, as Beijing accelerates a consolidation drive targeting the weakest parts of its banking sector. Fitch has flagged smaller regional banks as the system's most vulnerable nodes, and the closures reflect sustained pressure on institutions that loaded up on local government debt and property-related loans during the boom years. The scale of the cull signals that Beijing is prioritising financial stability over the political awkwardness of visible bank failures ahead of a period of broader economic stress.