Mar
16
China Needs Caution as It Mulls Debt-Equity Swaps, CBRC Says
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State company reform may yield 1.2 trillion yuan of bad loans
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Current law bans banks from owning stakes in non-bank firms
China needs to move cautiously before allowing the country’s banks to convert their soured loans into equity, according to the nation’s top banking regulator.
While the issue of debt-to-equity swaps is under study, it’s not as easy to execute as some media have reported, Shang Fulin, Chairman of China Banking Regulatory Commission, told reporters at the National People’s Congress in Beijing on Wednesday. The current law preventing investment in non-bank institutions is intended to protect depositors, he said, adding that regulators would need to address some technical details before proceeding…
China Needs Caution as It Mulls Debt-Equity Swaps, CBRC Says
