SHANGHAI: A takeover by Chinese regulators of a troubled lender with links to a missing tycoon jolted markets, lifting interbank financing costs for some smaller banks and raising worries about broader risks to the country’s financial system.
The China Banking and Insurance Regulatory Commission (CBIRC) would take control of Inner Mongolia-based Baoshang Bank for a year from May 24, as it posed serious credit risks, the regulator and the central bank said, in a rare move to seize direct control of a bank.
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