Why China took over Zhongbang Bank – and what it says about hidden financial stress

Years of aggressive expansion and flawed corporate governance have laid bare fresh vulnerabilities in China’s banking system, prompting regulators to step in to rescue an underperforming regional player. Zhongbang Bank, a lender in central China’s Hubei province mired in a credit crisis, has become the latest to force Beijing into action amid official clean-up efforts to create a healthy banking system. The National Financial Regulatory Administration (NFRA) announced on Friday that it would...