BEIJING, May 26 -- The development of a non-performing loan (NPL) securitization market is credit positive because it will provide additional means for banks to dispose of their NPLs, global rating agency Moody's predicted on Thursday.
China Merchants Bank Co. Ltd. and Bank of China Limited last Thursday announced their first-ever proposed securitization of NPLs, which would be issued by the end of May and would be China's first NPL securitization since 2008.
Securitization allows banks to divest a wide range of NPLs, ranging from granular consumer finance portfolios to concentrated corporate loan portfolios.
Securitization provides flexibility and liquidity for banks to remove their NPLs, especially retail NPLs. Existing regulations ban financial institutions from selling their retail NPLs to distressed asset management companies, but there are no such restrictions on securitizing these NPLs, according to Moody's.
French girl ties the knot with Chinese boy
Beijing Style: ready for bare legs
Century-old station sees railyway evolution
Enthusiasts perform Kung Fu at Wudang Mountain
Stunning photos of China's fighter jets in drill
Monk's mummified body to be made into a gold Buddha statue
Former Chinese solider of the French Foreign Legion seeks wife online
Asia's longest and highest suspension bridge to open to traffic
China's first interactive robot looks like a beauty
Top 20 hottest women in the world in 2014
Top 10 hardest languages to learn
10 Chinese female stars with most beautiful faces
China’s Top 10 Unique Bridges, Highways and Roads
Tech firms seen leaving Shenzhen
Diplomats should avoid public opinion spotlight
Authorities urged to take action on fake universities that continue to proliferate
Refugees from Vietnam and their offspring grapple with lack of citizenship after more than three decadesDay|Week
