China Plans to Let Banks Sell Soured Personal Loans to Ease Risks
- Trial program may start as soon as this month: people
- Non-performing personal loans estimated at 1 trillion yuan
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China plans to allow some commercial banks to start selling soured personal loans to distressed asset managers as soon as this month, according to people familiar with the matter.
At a December meeting by the official credit assets transfer center, banks and state-run bad-loan managers were asked to accelerate preparations to ensure a smooth start of the trial program in January, said the people, asking not to be identified as the matter is private. Industrial & Commercial Bank of China Ltd. could be the first seller, other people said.