The management of Baoshang Bank, based in Inner Mongolia’s Baotou city, was taken over by the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) with immediate effect for a year to contain its credit risk, according to a May 24th statement by the two regulators. Photo: SCMP Handout

China’s regulators put city-level banks and rural lenders on notice after the first state takeover of a private bank since 1998

  • Baoshang Bank’s case reflects credit risks hidden in China’s small and medium lenders and more of these issues will surface as regulations are tightened
Topic |   Banking & Finance

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The management of Baoshang Bank, based in Inner Mongolia’s Baotou city, was taken over by the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) with immediate effect for a year to contain its credit risk, according to a May 24th statement by the two regulators. Photo: SCMP Handout
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File picture of Xiao Jianhua. Photo: Handout

China’s bank regulators take over Baoshang Bank, moving a step closer to breaking up financier Xiao Jianhua’s business empire

  • The People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) have taken over the management of Baoshang Bank for two years, according to a joint statement
  • China Construction Bank will assume the daily operations of Baoshang to protect the interests of customers and depositors, the regulators said
Topic |   Banking & Finance

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File picture of Xiao Jianhua. Photo: Handout
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