BEIJING (Reuters) - China's banking regulator said on Friday it is encouraging banks to speed up disposal of non-performing loans (NPLs) and will maintain its push for asset-backed securitization of NPLs.
The regulator will go ahead with the creditor committee system to tackle the corporate debt problem, said Xu Jieqin, vice chief of the Policy Research Bureau at the China Banking Regulatory Commission.
It will also encourage banks to conduct debt restructuring of companies facing temporary difficulties and support banks to conduct debt-for-equity swaps, Xu added.
Xiao Yuanqi, Chief of the Prudential (LON:PRU) Regulation Bureau, said banks have basically completed self-assessment on risks that authorities had mandated under a regulatory crackdown.
The CBRC has extended by two months a June deadline for banks to submit risk assessments over concerns it was putting strain on the lenders, sources told Reuters in early August.