China’s banking regulator has worked with the finance ministry and central bank to accelerate the issuance of special local government bonds to help supplement the capital of small and medium-sized banks, reports Reuters.
The central government will take multiple measures to enhance the capitalization of small and medium-sized banks and build up their resistance to risks. China’s economic growth slowed sharply in the second quarter, highlighting the colossal toll on activity from widespread COVID lockdowns.
In January to May, small and medium-sized banks disposed of RMB 394.3 billion ($58.4 billion) of non-performing loans, up by RMB 107.2 billion from a year earlier.
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