PBC and CBIRC Announce Takeover of Baoshang Bank for One Year
PBC and CBIRC jointly announced that, in line with the relevant laws, CBIRC has decided to take over Baoshang Bank Co., Ltd. for one year. The takeover, which starts on May 24th, 2019 and ends on May 23, 2020, is in response to the serious credit risks and is intended to safeguard the legitimate rights and interests of depositors and other clients. Additionally, PBC and CBIRC published, on May 24 and May 26, questions and answers (Q&As) on the takeover of Baoshang Bank Co., Ltd.
A special working group has been jointly established by PBC and CBIRC, in collaboration with other concerned authorities, to take over Baoshang Bank. Zhou Xuedong and Li Guorong have been appointed as Head and Deputy Head of the group, respectively. From the beginning of the takeover, the group will fully execute business management rights on Baoshang Bank Co., Ltd. and entrust the China Construction Bank Corporation (CCB) to handle its business operations. Under the guidance of the working group, CCB has established a task force to work in line with the entrustment agreement. After the takeover, Baoshang Bank Co., Ltd. will be operating normally and providing customer services as usual to safeguard the legitimate rights and interests of depositors and other clients in a law-based manner.
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Keywords: Asia Pacific, China, Banking, Q&A, Credit Risk, Baoshang Bank, China Construction Bank, PBC, CBIRC
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