Financial Security Net

On May 24, 2019, Baoshang Bank in North China’s Inner Mongolia Autonomous Region was taken over for one year by the People’s Bank of China and the China Banking and Insurance Regulatory Committee over serious credit risks. It is the first time a commercial bank has been seized by regulatory organs and one of the most serious credit risk events China’s banking industry has seen in the past two decades. The central bank pledged to resolutely maintain stability in the financial system, ensure markets have plenty of liquidity and bring financial risks under control. Financial experts cautioned that the central bank has to leverage a variety of monetary policy tools to ensure reasonable and ample liquidity in the financial market, and meanwhile provide targeted liquidity support to smaller lenders.