["Localization" supervision is tightening and some small banks are reducing their existing off-site deposits] September 24th, some local small banks are continuing to digest their existing off-site deposits. "Now we are basically reducing the deposits outside the province on a quarterly basis and increasing the deposits within the province." An insider of a private bank said that the bank plans to gradually digest the deposits from other places and complete them by the end of 2027. Since this year, financial regulatory authorities have become more stringent in their requirements for localized operations of private banks and local commercial banks. This forces small banks that have relied too much on Internet platforms to attract deposits to have to "replace" their existing off-site deposits into compliant localized deposits. In July this year, some local commercial banks and private banks received regulatory guidance to clarify the criteria for determining local customers, that is, at least three of the five elements including ID card address, permanent residence, main business place, mobile phone number ownership, and device location information must be met. At the same time, supervision also requires relevant banks not to add new off-site businesses, all existing businesses must be settled before the end of 2027, and the maturity date must not be extended by extension and restructuring. "This requirement is not only for the loan business, but also for the deposit business." A bank insider said that the supervision is not "one size fits all", but requires the natural digestion of existing off-site deposits, and also provides a sufficient transition period. A few years ago, some small banks accumulated a large amount of off-site deposit funds and customers through Internet financial platforms. Although subsequent financial regulatory authorities have stopped local commercial banks from soliciting deposits from other places in 2021, some banks still retain their existing business. The regulatory guidance in July requires further cleaning up of existing businesses, which is a further deepening of financial supervision. (Shell Finance)