The regulators identified serious credit risks.
Reuters reports that China's financial regulators are moving to take control of regional lender Baoshang Bank due to serious credit risks posed by the bank.
China Construction Bank (CCB) will be entrusted to handle the business operations of the small lender as the People's Bank of China and China Banking and Insurance Regulatory Commission assume control of the bank.
The rare takeover, the first in nearly two decades, highlights the long struggle of some smaller regional lenders in China, which suffer from deteriorating asset qualities, inadequate capital buffers, and poor internal controls and corporate governance.
Baoshang had a total of $22.68b (CNY156.5b) of outstanding loans by the end of 2016, according to the bank’s last filing on its assets and liabilities on its website.
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