China's central bank extends control of Baoshang Bank by six months

Huishang Bank

23/05/2020 09:12

SHANGHAI, May 23 (Reuters) - China's central bank said on
Saturday said temporary control of Inner Mongolia-based Baoshang
Bank will be extended by six months due to the novel coronavirus
pandemic.
    Chinese financial regulators took control of Baoshang in May
last year citing "serious" credit risks, and have since approved
Mengshang Bank and Huishang Bank  3698.HK  to take over its
assets and operations.  urn:newsml:reuters.com:*:nL4N2CI3Z4
    The People's Bank of China said in a statement regulators
would extend control of Baoshang - initially set to last for up
to a year - to Nov. 23. It added that Mengshang and Huishang's
acquisition plans were proceeding in an orderly manner. 
    Baoshang Bank came to prominence after its key stakeholder
Tomorrow Holdings was targeted in a government crackdown on
systemic risks posed by financial conglomerates.
    The rare takeover, the first in nearly two decades, also
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.


 (Reporting by Brenda Goh
Editing by Shri Navaratnam)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))