China to set up new bank to take over Baoshang’s Inner Mongolia operations – c.bank official

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BEIJING, April 10 (Reuters) – China will set up a new bank to take over Baoshang Bank’s operations in Inner Mongolia, Huang Xiaolong, deputy head of the financial stability bureau of the People’s Bank of China, said on Friday.

The China Banking and Insurance Regulatory Commission (CBIRC) has approved the establishment of Mengshang Bank and an opening ceremony will be held soon, Huang said at a briefing.

The new bank will take over all the assets and liabilities and operations of Baoshang Bank in Inner Mongolia, Huang said, adding that Baoshang’s four branches outside the region will be taken over by Huishang Bank.

Financial regulators have been looking for investors for the reconstruction of Baoshang since they took control of the Inner Mongolia-based bank with serious credit risks last May.

Huishang Bank said in February it planned to raise up to 20 billion yuan ($141.3 billion) in bonds to maintain the health of its liquidity after taking over four branches of Baoshang in Beijing, Shenzhen, Chengdu and Ningbo. ($1 = 0.1415 Chinese yuan renminbi) (Reporting by Kevin Yao and Zhang Yan;Editing by Kirsten Donovan)

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