(CBN - Global) April 20 -- China's National Association of Financial Market Institutional Investors has issued a procedure for 'Non-Performing Asset Backed Securities Information Disclosure.' It will put into place a stringent system to ensure more transparent information disclosure and investigation.
China has resumed the NPA securitization program after an eight-year suspension. Relevant preparations are underway at several major Chinese banks.
The ability to improve the transparency of the market-based disposal of non-performing loans is key to successful NPA securitization in China, wrote Mr. Ji Zhihong, director general of the People Bank of China's Financial Market Department, in the recently released China Asset Securitization White Paper 2016.
Chinese commercial banks' outstanding non-performing loans reached CNY1.27 trillion (USD196.38 billion) at the end of last year.