China's National Financial Regulatory Administration announced that it has placed Wuhan Zhongbang Bank under takeover because of severe credit risk, with the measure intended to protect depositors and other clients. The takeover runs from July 3, 2026 to July 2, 2027. Customer business will continue as normal, and the lawful rights of depositors and other clients will be protected. A takeover team has been established, led by the Hubei Provincial Local Financial Administration and the Wuhan Municipal People's Government, with participation from the Hubei office of the National Financial Regulatory Administration, the Hubei branch of the People's Bank of China and the Deposit Insurance Fund Management Co. From the start of the takeover, Zhongbang Bank's shareholders' meeting, board of directors and supervisory board cease performing their duties, and those functions, along with the bank's operating and management powers, are assumed by the takeover team. During the takeover period, and under the supervision of the National Financial Regulatory Administration and the Hubei Provincial People's Government, Bank of Hankou will assume relevant assets, liabilities, business and staff of Zhongbang Bank in accordance with laws and regulations.
China Banking and Insurance Regulatory Commission2026-07-03
China's National Financial Regulatory Administration places Zhongbang Bank under one year takeover over severe credit risk
China's National Financial Regulatory Administration has placed Wuhan Zhongbang Bank under a one year takeover from July 3, 2026 after identifying severe credit risk. A takeover team will assume the powers of the bank's governance bodies and management while customer business continues as normal. During the period, Bank of Hankou will take on relevant assets, liabilities, business and staff under regulatory and provincial government oversight.