PBC and CBIRC Extend Takeover Period of Baoshang Bank Amid Pandemic
PBC announced that, on the approval of CBIRC, the original timeline for completion of the takeover of Baoshang Bank Co. Ltd. will be extended by six months—from May 24, 2020 to November 23, 2020. This timeline has been extended due to the disruptions caused by the COVID-19 outbreak.
On May 24, 2019, PBC and CBIRC had jointly announced to take over Baoshang Bank Co., Ltd. for one year, starting from May 24, 2019, in line with the Law of the People’s Republic of China on the People’s Bank of China, the Law of the People’s Republic of China on Banking Regulation and Supervision, and the Law of the People’s Republic of China on Commercial Banks. Since the takeover, the special working group for Baoshang Bank takeover has secured steady progress in the acquisition and transfer of relevant business, asset and capital verification, and the reform and restructuring of the bank. So far, a new bank named Mengshang Bank has been established and put into stable operation. Huishang Bank is also taking over a part of the Baoshang’s assets, liabilities, and businesses. Both these banks are moving ahead with their plans in an orderly manner. However, due to the disruptions caused by the COVID-19 outbreak, the subsequent law-based disposal of Baoshang Bank needs to be postponed as appropriate.
Related Link (in Chinese): CBIRC Press Release
Keywords: Asia Pacific, China, Banking, Resolution Framework, Baoshang Bank, Huishang Bank, COVD-19, CBIRC, PBC
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