More local govts allowed to establish AMCs

Move to check surge in bad loans, offset ongoing economic slowdown

The banking regulator has allowed more provinces to set up local asset management companies to handle bad loans owed by local governments and financial institutions, which have seen surging troubled assets amid the economic slowdown.

Municipalities of Beijing, Tianjin, Chongqing, and Fujian and Liaoning provinces have obtained approval from the regulator to do so, the Economic Information Daily reported on Tuesday, citing people close to the China Banking Regulatory Commission.