China is sharpening its scrutiny of small banks' shareholders amid fears th...
BEIJING/HONG KONG - China is sharpening its scrutiny of small banks’ shareholders amid fears that loans from the lenders to big investors could prove a weak point in the country’s financial system, jolted by the state’s weekend rescue of one lender and recent takeover of another.
The regulator also asked the firms if they had disclosed all business transactions with their main owners, according to a regulatory notice seen by Reuters. “Certainly if there are under-capitalized corporates as majority shareholders of the less well-funded smaller banks you could have a bank run,” he said, adding the regulators have so far done a good job of rescuing ailing financial firms.
The CBIRC didn’t respond to Reuters’ request for comment on its latest crackdown. The people spoke to Reuters on condition of anonymity due to the sensitivity of the matter.Regulators’ focus on small banks and their connections has intensified since late May, when the surprise takeover of Baoshang Bank sent shockwaves through China’s interbank markets, sharply raising borrowing costs - not all of which have returned to their pre-takeover levels.
Shares in Bank of Jinzhou have not traded since April, when its auditor, EY, quit after refusing to sign off on its 2018 accounts because it could not agree with the bank on how to verify the actual use of loans made by the bank, some of which it feared did not match the purpose given.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
How Close Is China To A Financial Crisis?China haters have been waiting for a financial crisis out of China since at least the early 2000s. Some bad news...
Leer más »
‘When paradigms die’: China veterans fear extinction in Trump’s WashingtonA younger foreign policy establishment that is more hostile to China is ascendant, troubling an older generation wary of a potential military confrontation and even a new era of McCarthyism.
Leer más »
NBA Renews China Digital Deal With TencentThe National Basketball Association and China’s Tencent Holdings have announced a five-year extension of their existing partnership, which sees Tencent as the NBA’s official digital partner. The ne…
Leer más »
Breakingviews - China slowly clarifies its bank bailout message(Reuters Breakingviews) - China is gradually clarifying its bank bailout message...
Leer más »
Award-Winning Korean Film ‘Parasite’ Pulled From China FestivalSouth Korean director Bong Joon-ho’s “Parasite,” this year’s Palme d’Or winner, was cancelled from screening Sunday as the closing film for China’s FIRST Film Festival for “technical reasons,” maki…
Leer más »
Asia markets down as US-China trade talks loomRhetoric on both sides has hardened despite an agreement in June by Presidents Donald Trump and Xi Jinping to revive efforts at ending the costly fight over China's technology ambitions and trade surplus.
Leer más »