China's small, rural banks face a crisis amid economic slowdown, prompting regulators to pursue consolidation.

China's banking sector faces a deepening crisis amid economic slowdown, with small, rural banks holding 13% of the country's total banking system assets. Regulators, criticized for lax oversight, are now pursuing consolidation as a strategy to contain fallout. The situation raises concerns over the resilience of the world's second-largest economy and its potential impact on global economic health.