FINANCE

China’s Bank Bailout Fund Spending Hits Six-Year Low

Published: Mar. 30, 2026 6:03 p.m. GMT+8

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China’s deposit insurance fund spent the least in six years on bank risk resolution in 2025, even as efforts to deal with troubled smaller lenders continued.

The fund spent 13.6 billion yuan ($2 billion) on risk resolution last year, according to data released Friday by the People’s Bank of China.

That marked a sharp drop from 103.1 billion yuan in 2020 and 91.1 billion yuan in 2022. The fund was deployed in major risk cases in those years, including Baoshang Bank Co. Ltd. and Liaoyang Rural Commercial Bank　Co. Ltd.

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China’s deposit insurance fund spent 13.6 billion yuan on bank risk resolution in 2025, the lowest in six years.
Spending dropped significantly from 103.1 billion yuan in 2020 and 91.1 billion yuan in 2022, despite ongoing issues with smaller banks.
The fund collected 65.6 billion yuan in premiums last year, with a year-end balance of 130.4 billion yuan.

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Who’s Who

Baoshang Bank Co. Ltd.: Baoshang Bank Co. Ltd. was a Chinese bank that required significant risk resolution funding. In 2020, the deposit insurance fund spent 103.1 billion yuan addressing major risk cases, including Baoshang Bank. This highlights its involvement in significant financial distress leading to substantial intervention.

Liaoyang Rural Commercial Bank Co. Ltd.: Liaoyang Rural Commercial Bank Co. Ltd. was identified as a major risk case that required the deployment of China's deposit insurance fund in previous years. Specifically, the fund was used for risk resolution involving this bank and Baoshang Bank Co. Ltd. in 2020 and 2022.

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What Happened When

2015：: China's deposit insurance fund was established.

2020：: The deposit insurance fund was deployed in major risk cases, including Baoshang Bank Co. Ltd.

2022：: The deposit insurance fund was deployed in major risk cases, including Liaoyang Rural Commercial Bank Co. Ltd.

2025：: The deposit insurance fund spent 13.6 billion yuan on bank risk resolution, the lowest in six years.

By year-end 2025：: The fund's balance increased to 130.4 billion yuan, following the collection of 65.6 billion yuan in premiums from more than 3,000 financial institutions.