China says risks at small banks ‘manageable’ after takeover
BEIJING: China's banking regulator says the risks at small and mid-sized banks are manageable, a central bank publication reported yesterday, in the latest move to soothe investors' concerns after the government took over a troubled regional lender.
The China Banking and Insurance Regulatory Commission took control of Inner Mongolia's Baoshang Bank on May 24 due to "serious" credit risks, rattling Chinese markets and prompting the People's Bank of China to inject cash into the banking system. The takeover was due to the illegal use of bank funds by Tomorrow Holdings, which holds 89 per cent of Baoshang's shares,
While the authorities said it was a standalone case, the seizure comes as Beijing is urging banks to boost lending to help cushion an economic slowdown, fuelling concerns about rising debt and more bad loans. - AFP
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