China to reshuffle management, recapitalize smaller banks to curb risks: Caixin 0 SHARES Share it! Share TweetBy ReutersBEIJING – China will take steps including management reshuffles and fund infusions to bolster the weakening profiles of its smaller banks, vice chairman of the banking and insurance regulator said, according to financial news outlet Caixin on Sunday. The health of China’s smaller banks has come under renewed scrutiny recently, as two local lenders suffered bank runs in less than two weeks amid fears over poor management and liquidity issues. “Smaller banks are small financial institutions by size, but they carry a great spill-over risk,” said Zhou. The smaller sector is facing risks because of a difficult macro environment both at home and abroad, poor management at smaller banks, and credit risks triggered by deteriorating financial conditions of companies, Zhou said.

Source: Manila Bulletin November 10, 2019 10:46 UTC