THE central bank sought to calm investors late Sunday after last month’s takeover of Inner Mongolia-based Baoshang Bank, saying regulators are not planning any more such moves for the moment.

The China Banking and Insurance Regulatory Commission (CBIRC) took control of Baoshang on May 24, rattling Chinese markets and prompting the People’s Bank of China (PBOC) to inject cash into the banking system.

In response to concerns that regulators planned more takeovers of financial institutions, the PBOC said Sunday that Baoshang was a standalone case.

“Everyone, please don’t worry. At present we don’t yet have this plan,” it said in a statement.

The PBOC also said it would use various monetary policy tools to stabilize money markets and boost banking system liquidity, but did not mention broader easing.

“The PBOC has fully estimated and prepared for the various factors that will affect liquidity in June, and will flexibly use reverse repurchase agreements and the medium-term lending facility in accordance with the cash supply-and-demand situation of the market,” it said.

It also said relatively low reserve requirements for medium and small-sized banks would boost their liquidity, while a previously announced phased cut to reserve requirements is expected to release 100 billion yuan (US$14.5 billion) in long-term liquidity to medium and small-sized banks June 17.(SD-Agencies)