BOC ready for relaunch of NPL securitization pilot
Bank of China Ltd announced on Monday evening it is actively preparing for China's relaunch of a pilot program on non-performing loan securitization.
The People's Bank of China, the central bank, and the China Banking Regulatory Commission named six Chinese banks, the five largest State-owned commercial lenders by assets plus China Merchants Bank Co Ltd, as the first batch of participants to explore NPL securitization as a way to dispose of these loans from their balance sheets.
The regulators set 50 billion yuan ($7.7 billion) as the initial quota for the six banks to test NPL securitization. Among the total, Bank of China has been planning to issue 1 billion yuan of securities backed by non-performing assets since the second half of 2015, Beijing-based Caixin Media reported.
