A bitter turf war between China's two most important financial regulators is hampering policy co-ordination just as the country's debt-laden financial system is starting to show signs of real strain.
The China Banking Regulatory Commission and the People's Bank of China, the central bank, have always been rivals, but now rising tensions are obstructing reforms and efforts to tackle risks in the financial sector, according to officials from both agencies.
From the outside, the Chinese system can often look like a monolithic structure but the various arms of the bureaucracy are often engaged in vicious institutional battles that can delay or even hamstring policy.
In just one example of how rancorous the split has become, several people familiar with the matter say a Financial Stability Council chaired by the PBoC and including the heads of the main financial regulatory bodies has met just once since it was established last August.
The row comes after several high-profile defaults in recent weeks including the first ever public domestic bond default in modern history and a small bank run in eastern China.
The council has not been able to meet because of opposition from the CBRC, which has vehemently objected to what it sees as a power grab by the PBoC.