1. Systemic risk: The regulatory authorities may have considered the systemic risk of Minsheng Trust. As a large financial institution, if it is suddenly taken over or closed down, it may have a serious impact on the entire financial system. Therefore, before taking action, we must fully evaluate and weigh various risks and formulate corresponding measures to protect financial stability.
2. Social instability: The government hopes to avoid social instability caused by the collapse of Minsheng Trust. If the company suddenly closes down or mass layoffs lead to unemployment, it will lead to social dissatisfaction and protest. In order to maintain social stability, the government may choose to take other measures to temporarily stabilize the situation.
3. The takeover cost is too high: it will cost a lot to take over Minsheng Trust. On the one hand, it takes a lot of manpower and material resources to solve internal problems and clean up bad debts after taking over. On the other hand, due to the huge scale and complex financial business of Minsheng Trust, it may encounter difficulties and obstacles in asset disposal. Therefore, after considering these costs, the regulatory authorities chose to suspend the takeover.
4. Limited capacity of the regulatory authorities: Although the regulatory authorities have strengthened supervision and management of the financial industry in recent years and improved their own capabilities, there are still some shortcomings. It is not easy to take over a troubled financial institution and resume its normal operation. Therefore, it is understandable to choose to postpone taking over after considering your actual situation.
5. Slow progress of market-oriented reform: The reason why Minsheng Trust has not been taken over is also related to the slow progress of market-oriented reform. In the past few years, China's financial system has been undergoing market-oriented reform, but the reform process is relatively slow. If regulators want to solve the problem of Minsheng Trust through market mechanism, they need to wait for the improvement and landing of relevant systems and mechanisms, which is also an important reason for the delay in taking over.