BEIJING - The China Banking and Insurance Regulatory Commission (CBIRC), the country's banking regulator, has approved the application of the troubled Baoshang Bank to enter bankruptcy procedures.

The bank should complete follow-up work in strict accordance with relevant laws and regulations and report major issues to the CBIRC promptly, according to a statement on the website of the commission on Monday.

China's central bank and the CBIRC took over the Inner Mongolia-based commercial bank in May last year due to its "serious credit risks."

In January, Baoshang Bank's four branches outside Inner Mongolia autonomous region were taken over by Huishang Bank, an Anhui-based commercial bank.

Meanwhile, Mengshang Bank, a new commercial bank set up to acquire Baoshang Bank's assets, liabilities, businesses, and employees within Inner Mongolia autonomous region, began operating on April 30.