Five Things to Know About the Baoshang Bank Takeover

As news broke that Chinese regulators took over a private bank last week, concerns emerged about possible ripple effects.

On Friday, the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) took over Baoshang Bank Co. Ltd., citing “severe credit risk.” It was the first time that a private lender in China had been directly taken over by authorities in 20 years.