China hints at future bank resolution framework

Baoshang Bank collapse offers clues to how government intends to resolve tomorrow’s failing banks

Baoshang Bank- - wikicommons-Bjoertvedt - montage.jpg
Risk.net montage/Wikicommons-Bjoertvedt

The seizure and mandatory unwinding of one of China’s most toxic lenders could ultimately lay the foundation for the nation’s bank recovery and resolution framework, practitioners and analysts say.

While Chinese authorities have demonstrated an unusual level of transparency in the rescue of Baoshang Bank, market participants say regulators should also use the opportunity to provide clarity on areas such as ending the reliance on government bailouts and the fate of debtholders.

“People are

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: