BloombergChina’s financial regulator said it would implement a series of measures to shore up the nation’s troubled smaller banks and insurers, while continuing a clampdown on shadow financing and property speculation. Other steps include setting up a resolution fund and bridge banks, while introducing new investors and allowing market-oriented exits, it said. Many of China’s 3,000 small banks are coping with a mountain of bad loans, prompting the government to crack down on risky funding practices. Small, troubled banks pose a risk to the Chinese economy, which is already growing at its weakest pace since the early 1990s. Authorities would make it easier for them to gain access to financing through targeted reserve cuts, relending and rediscounting, among other policy tools, it said.

Source: Taipei Times January 05, 2020 15:56 UTC