BEIJING, July 10 (Reuters) - China’s central bank said on Wednesday the swap of interbank negotiable certificates of deposit (NCDs) issued by Baoshang Bank was completed on Tuesday.
China’s state-backed deposit insurance fund will start taking over Baoshang Bank’s interbank debt worth a total of 45.21 billion yuan ($6.58 billion) from Monday, Reuters reported last week citing sources.
A total 43.59 billion yuan NCDs of Baoshang have been taken over by the insurance fund so far, the People’s Bank of China (PBOC) said on its official Weibo account, accounting for 96.4% of the total NCDs within the coverage plan.
Regulators seized control of Inner Mongolia-based Baoshang Bank on May 24, citing “severe credit risks”. Beijing has since taken a series of measures to ease liquidity stress in China’s interbank market, and has repeatedly said risks at small financial institutions are manageable.
Reporting by Lusha Zhang and Andrew Galbraith; Editing by Sam Holmes