BEIJING: China’s banking regulator says 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 last month.The China Banking and Insurance Regulatory Commission (CBIRC) took control of Inner Mongolia’s Baoshang Bank due to “serious” credit risks on May 24, rattling Chinese markets and prompting the People’s Bank of China to inject cash into the banking system.
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.