Recently, a number of private real estate companies in mainland China went bankrupt, and Chinese state media blamed the problem on illegal loans by private banks. Some financial commentators believe that private banks will become targets for suppression under communist leader Xi Jinping’s regime. China’s state outlet Economic Daily published a op-ed on Oct. 15, claiming that many private banks have recently been fined by regulatory authorities for “violations of laws and regulations.” The article criticized some private banks for blindly seeking large borrowers to lend a large amount of loans, which could have unintended consequences; lending to real estate projects in violation of regulations; and the largest shareholders excessively intervening in the operation and management of the banks. The article states that the reasons why private banks have conducted business in violation of laws and regulations are “not only related to the inadequate supervision and the profit-seeking nature of …