In Depth: The Billion-Dollar Plan to Replenish Smaller Chinese Banks’ Capital

Small and midsize banks in China worried about the bad debts on their balance sheets may soon get a helping hand from local governments.

Policymakers are planning to allow local governments to replenish the capital of certain small and midsize banks to the tune of about 200 billion yuan ($28.2 billion) in an effort to defuse bad-debt risks, sources familiar with the matter told Caixin.