China central bank says no sign of abnormality in small, mid-sized banks

FILE PHOTO: Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee

BEIJING (Reuters) - There are no signs of abnormality in China’s small- and mid-sized banks, the central bank’s Shanghai Head Office said on Wednesday, in latest remarks to calm market sentiment after the surprise seizure of Baoshang Bank due to credit risks.

The local branch of the People’s Bank of China (PBOC) said in a statement that small- and medium-sized banks have relatively ample liquidity, and it will support lenders facing temporary liquidity issues.

Reporting by Cheng Leng and Beijing Monitoring Desk; Editing by Jacqueline Wong