China has selected certain financial institutions to participate in a trial program to buy and sell banks' non-performing loans, in an effort to streamline the process of handling commercial banks' ballooning bad debt.
The China Securities Regulatory Commission revealed the trial program in January, aiming to use securitization and transfers of non-performing assets to help commercial banks deal with its mounting bad debt.
The group of financial institutions selected include unnamed banks and trust companies, which have begun asset transfers of non-performing loans, according to Caixin Media citing insiders with knowledge of the matter.
Chinese banks have previously structured wealth management companies to take some of its non-performing loans off their books. The trial program aims to bring transparency and market principals to ho...
This news article comes via , who is the copyright owner of this information and news. FintekAsia.com has licensed the rights to this article and any republication or re-distribution in whole or in part of this content is strictly prohibited without the express consent of China Money Network
