The Chinese central bank has announced the conversion of Baoshang Bank’s outstanding interbank certificates of deposit (CD’s) in the wake of the forced takeover of the Inner Mongolian lender.
The National Interbank Funding Center (全国银行间同业拆借中心) completed the conversion of Baoshang Bank’s outstanding interbank CD’s into new CD’s on 9 July 2019, with the Shanghai Clearing House (上海清算所) conducting registration.
The new CD’s officially entered circulation on 10 July.
Holders of Baoshang Bank’s outstanding interbank CD’s were given the opportunity to convert them into new CD’s in accordance with a guaranteed ratio, with the new instruments enjoying full protection of principal and interest as provided by the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC) and China’s Depository Insurance Fund.
A total of 249 CD holders have completed conversion, accounting for instruments with a combined face value of 43.59 billion, and 96.4% of the interbank CD’s included within the conversion scope.