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China s indebted local governments splash out billions to save struggling small banks

Poor liquidity at China’s regional banks could trigger instability in the state-owned financial system, reduce the credit supply for the real economy, and potentially spill over to a wide range of industries.

China s financial-crisis defusing tools see biggest test in a quarter century

From intentionally setting up ‘bad banks’ in the ’90s to more recent bank takeovers, Beijing has a history of reaching into its deep bag of policy tools to make economic repairs.

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