CMBC's Micro- and Small-Enterprise Lending Business Suffers From Intense Pricing Competition

China Minsheng Banking Corp.'s credit risk still faces challenges after years of restructuring. The bank was once a leader in China’s micro- and small-enterprise, or MSE, financing market. The fragility of small private enterprises translated to a painful business restructuring for CMBC over the past six years. These difficulties are compounded by ongoing regulatory tightening to crack down on shadow bank credits and reduce wholesale funding.