Baoshang put under CBIRC care

China's banking and insurance regulatory body took over Baoshang Bank on Friday for one year, as the joint-stock commercial bank is exposed to serious credit risk, according to a statement jointly issued by the People's Bank of China and the China Banking and Insurance Regulatory Commission.

The central bank and the CBIRC will form a special working group in charge of the takeover process.

Starting from Friday, the group will execute business management rights on Baoshang Bank, and China Construction Bank will be the trustee of the bank, the statement said.

"After the takeover, Baoshang Bank will maintain normal operations, and its clients will be able to do business with the bank as usual.

The regulators will protect the legal rights of the bank's depositors and other clients," it said.

The PBOC, the CBIRC and the country's deposit insurance fund will ensure that individual deposits and interest will be fully repaid, and depositors can withdraw money freely, it said.

The takeover will not influence the bank's wealth management products, said the regulators.