Minsheng 'may establish bad-loan asset company'

Slowing economy is resulting in growth in volume of NPLs

China Minsheng Banking Corp is studying plans to set up an bad-loan asset management company, as the Chinese lender seeks ways to rid itself of some of its $5.7 billion of non-performing loans (NPLs), people with knowledge of the matter said.

Minsheng Bank is seeking guidance from the banking regulator on establishing such an entity, including details on its potential business scope and ownership structure, said the people, asking not to be identified as they aren't authorized to speak publicly. If the proposal proceeds, Minsheng Bank will be the first Chinese lender to operate a so-called bad-loan manager.