Takeover of Little-Known Baoshang Casts Doubt Over Other Small Chinese Banks

Takeover of Little-Known Baoshang Casts Doubt Over Other Small Chinese Banks
A man walks past a building with an advertisement of Baoshang Bank in Beijing on Sept. 8, 2018. Reuters
Reuters
Updated:

BEIJING—A rare government takeover of a little-known Chinese bank has revived concerns about the true health of hundreds of small lenders in the country as a slowing economy and souring loans test their capital buffers and drain their reserves.

Regulators seized Baoshang Bank last week, citing serious credit risks. The sudden takeover of the Inner Mongolia-based lender has fanned worries about other banks with substantial borrowings.