FAST FIVE: It Begins: For The First Time Ever, China Takes Over An Insolvent Bank

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“It's a rare move for the Chinese central government to take over a bank,” said Shujin Chen, an analyst with Huatai Securities.

then revised its outlook on Baoshang to negative, questioning the lender's ability to repay borrowings.

And how long before depositors jog, run or sprint to their own bank to yank whatever deposits they have there, in the process beginning the terrifying bank run domino sequence of events, that eventually collapses China's $40 trillion banking system (by comparison, the US banking system is about $20 trillion).

While it has been generally described as a “small” bank, Baoshang had a total of 156.5 billion yuan ($22.68 billion) of outstanding loans by the end of 2016, a 65% jump from the end of 2014, according to the bank's last filing on its assets and liabilities on its website.

The last time Baoshang disclosed financial data was in the third quarter of 2017.

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