The China Banking Regulatory Commission plans to require lenders to set up procedures that would allow them to better handle future crises, Bloomberg reported. Major banks may have to put in place safeguards including selling debt that can be converted into equity. Regulators may also be handed broader powers to supervise lenders’ operations in order to identify potential risks early. The government had to spend more than US$650 billion over a decade bailing out banks after years of state-controlled lending, and is seeking to avoid a repeat of that scenario. The regulator is considering building “self-rescue” mechanisms into the system, possibly including “bail-in” debt. Regulators will reportedly have the authority to compel a troubled bank to activate its self-rescue mechanisms. China’s most important banks may also be forced to adhere to higher liquidity standards and have lower concentrations of loans to a single borrower than other banks in China.