This month, the China Banking and Insurance Regulatory
Commission (CBIRC) stepped in to take control of the Inner
Mongolia-based Baoshang Bank as it posed serious credit risks.
Chinese financial group Tomorrow Holdings, a key shareholder of
Baoshang Bank, has been under investigation by Chinese
regulators since the disappearance of the group's chairman Xiao
Jianhua in 2017. The move has sparked concern over the health
of smaller local banks across China, amid fears they suffer
from a lack of internal controls and corporate governance.
The People's Bank of China (PBOC) and CBIRC will offer
liquidity support to the bank and will guarantee all principal
and interest of corporate deposits and interbank