Chinese authorities’ takeover of the distressed Baoshang Bank — the first such case in nearly 20 years — has spooked the banking sector in the country, with banks finding it more difficult to borrow money from large lenders in the past month.
China’s central bank and the country’s banking and insurance regulator announced in late May that they would seize control of the unlisted Baoshang Bank for a year, highlighting the serious credit risks posed by the bank.
