BEIJING, Jan. 15 (Xinhua) -- China Banking and Insurance Regulatory Commission (CBIRC), the sector regulator, has approved the China Credit Assets Registry & Exchange (CCRE) to formally pilot non-performing loan (NPL) transference business, reported Xinhua Finance Thursday.
CBIRC gave a nod to CCRE piloting NPL transferences of bank single client to institutions and wholesale transferences of personal NPL.
Industry insiders said debut of the concrete related NPL transference deals may appear in the first quarter of this year as soon as possible and participating institutions have started programs reserving, reported Securities Times earlier this week.
By Wednesday, CCRE publicized experimental rules on NPL transference business and related detailed rules and launched online a tailored system to service related registration, listing, bidding, and information disclosure.
The first batch of banks allowed to take part in the single client NPL transferences to institutions and wholesale transference of personal NPL numbered 18, including six large state-owned lenders and 12 joint stock commercial banks, according to media reports.
Experts said piloting the NPL transference business via the CCRE can place all the process under regulatory and supervisory vision and ensure controllable risks of the business piloting, good to improve value discovery of NPL and guarantee standardized disposal of NPL.
Statistics showed that NPL ratio of commercial banks reached 1.96 percent in China by the end of the third quarter of 2020, up 0.02 percentage point quarter on quarter and their outstanding NPLs stood at 2.84 trillion yuan. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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