As China's regulators flesh out details of a long-awaited master plan to clean up the country's banking sector, it's becoming increasingly evident that much of the burden is going to fall on the shoulders of local governments who between them own or control hundreds of the weakest and riskiest small lenders.
Caixin
China's bank sector cleanup puts local governments in firing line
Scale of the problem is huge and current laws don't offer clear legal procedure
A new plan to push ahead with reform of problematic small and midsize banks makes it clear that the central authorities are passing the baton down to the provinces to come up with their own solutions. (Photo by Caixin)
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