Baosheng Large Creditors Only Covered to 70pc

Caixin: Exclusive: Baoshang Bank’s Creditors Get Added Backstop on Deposits, Debts Worth Over 50 Million Yuan

China’s financial regulators will guarantee at least 70% of the funds owed to corporate depositors and certain creditors of a bank that has become the first private lender in China to be directly taken over in 20 years, sources told Caixin.

The regulators also said in another statement (link in Chinese) on Sunday that all of Baoshang’s corporate deposits and interbank debts of up to 50 million yuan would be guaranteed. For those worth more than 50 million yuan, the takeover team will negotiate with creditors for further protection, according to the statement.

PBoC statement is here: 中国人民银行 中国银行保险监督管理委员会新闻发言人就接管包商银行问题答记者问