China’s central bank said Saturday that the timeline for execution of a takeover of troubled Baoshang Bank has been extended by six months, reported Caixin.
The original timeline for completion of the takeover was set for May 24, but has been extended to Nov. 23 due to disruptions caused by the coronavirus outbreak, according to the People’s Bank of China (PBOC).
The rare takeover was part of efforts to break up the business empire of fallen tycoon Xiao Jianhua and contain the “severe credit risk” posed by the bank to its depositors and other clients.
In the Saturday statement, the PBOC said that Mengshang Bank and Huishang Bank, which are taking over part of Baoshang’s assets, liabilities and businesses, are moving ahead with their plans in an orderly manner.
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