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China Bank To Package Bad Loans Into Securities

China Bank To Package Bad Loans Into Securities

Agricultural Bank of China Ltd is planning to offload bad loans by packaging them up as asset backed securities. The bank is planning to sell securities backed by 10.7 billion yuan ($1.6 billion ) of non performing loans on the interbank bond market.  As corporate leverage soars and economic growth cools, China’s banks face a rising tide of bad loans.

“The bank is planning to sell securities backed by 10.7 billion yuan ($1.6 billion ) of non performing loans on the interbank bond market.”

~ Bloomberg

China’s efforts to get to grips with its credit woes include debt swaps for local government, proposals for banks to swap loans for equity stakes in companies and the trial of the non performing loan backed securities.

Related Reports: Bloomberg

 

About Agricultural Bank of China

The predecessor of the Bank is Agricultural Cooperative Bank, established in 1951. Since the late 1970s, the Bank has evolved from a state-owned specialized bank to a wholly state-owned commercial bank and subsequently a state-controlled commercial bank. The Bank was restructured into a joint stock limited liability company in January 2009. In July 2010, the Bank was listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange, which marked the completion of our transformation into a public shareholding commercial bank.

Visit: Agricultural Bank of China


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