Financial Services

Yields on NCDs of some China regional banks jump after Baoshang Bank takeover


SHANGHAI, May 27 (Reuters) – Yields on some negotiable certificates of deposit (NCD) issued by regional banks in China rose more than 10 basis points on Monday, traders said, after regulators took over a troubled bank in Inner Mongolia.

NCDs are short-term interbank debt instruments traded in China’s interbank market, which have been used in the past by some smaller banks to fund speculative investments.

On Friday, financial regulators said the China Banking and Insurance Regulatory Commission (CBIRC) would take control of Baoshang Bank, in a rare takeover of a domestic lender, as it posed serious credit risks. (Reporting by Steven Bian and Andrew Galbraith; Editing by Clarence Fernandez)



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