Chinese regulators have taken over Inner Mongolia-based Baoshang Bank to manage its growing credit risks.

People’s Bank of China (PBOC) and China Banking and Insurance Regulatory Commission (CBIRC) have taken over the control for a year with immediate effect.

The two regulators confirmed the move is separate statements.

The takeover is a first such move by the government in the last two decades.

Baoshang had nearly $22.68bn of outstanding loans by the end of 2016, a surge of nearly 65% compared to 2014 figures, Reuters reported citing the bank data.

In December 2016, the lender’s non-performing loan ratio stood at 1.68%. Baoshang has not published its annual reports in the last three years.

Following the takeover, China Construction Bank has been awarded the responsibility to carry out all business operations of the bank.

All personal saving assets at Baoshang will be protected. The takeover will also have no impact on business operations, CBIRC said in a separate statement.

Later, the PBOC also announced that it will infuse capital into the Inner Mongolia-based bank to improve its situation.

Recently, China announced a series of planned reforms to further liberalise the banking industry.

The potential steps included eliminating the current asset requirement of $20bn for foreign banks which aims to open local branches.

It also plans to dump ceilings in single shareholder holding in local banks.

Separately, China also unveiled plans to reduce reserve requirement ratios (RRRs) for some small and medium-sized lenders.