China Regulator Pushes More Small Bank Mergers: Daily

The China Banking and Insurance Regulatory Commission approved Bank of Liaoshen to merge with Yingkou Coastal Bank and Bank of Liaoyang, and to assume their effective assets, all liabilities, business, branches and employees as more smaller banks are being merged and reorganized, the Economic Daily reported. In this way, smaller banks can use bond issuance, private placement, equity reorganization, asset securitization, as well as the introduction of strategic investors and new management to fully expose risks, and vigorously reduce non-performing assets, the newspaper said. It can also reduce the cost of competition among multiple banking entities in the region, the newspaper added.