BIS Review 4/2010  coordination with RBI has been using this provision for dealing with the legacy problem of insolvent cooperative banks rather than the liquidation option in case there are other cooperative banks or even commercial banks willing to take over such banks.
Meanwhile, it should be noted that China's financial system has been helped by the progressive opening-up strategy and its limited exposure to overseas markets. We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve.