BEIJING (Reuters) - China's central bank said on Thursday it had approved business operations of Mengshang Bank to take over the assets and operations of Baoshang Bank.
China's financial regulators took control of Baoshang last May due to "serious" credit risks and since then has pushed forward the restructuring plans of the lender.
Baoshang's assets, liabilities and operations within the Inner Mongolia region will be taken over by Mengshang, while its assets, liability and operations outside that region will be taken over in principle by the Huishang Bank (HK:3698), the central bank said in a online statement.
Qiao Junfeng, former vice president of China Construction Bank (OTC:CICHF)'s Inner Mongolia branch, is named as president of Mengshang Bank, the central bank added.
The registration capital of the new Mengshang Bank is 20 billion yuan, according to a separate statement also released on Thursday by the central bank.