| ID | 186138 |
| Title Proper | Bad banks with Chinese characteristics |
| Other Title Information | an ongoing transformation |
| Language | ENG |
| Author | Peresa, Irena ; Vidon, Edouard |
| Summary / Abstract (Note) | This article analyzes the experience of four asset management companies (AMCs) or ʽbad banks’ established in China in 1999 to address a systemic build-up of non-performing loans (NPLs). It describes the modalities of NPL transfers across several rounds of government interventions. It explains the AMCs evolving asset structure, funding and operations, with particular focus on a significant change in their business model. Overall, AMCs have helped stabilize the Chinese financial sector, albeit at a substantial fiscal cost. While they became permanent features of the financial system, the expansion of non-core activities has reduced their ability to perform their original function and generated additional systemic risk. Recent developments point to a renewed role, although a deeper reform of the NPL market will also be needed. |
| `In' analytical Note | Journal of Contemporary China Vol. 31, No.133; Jan 2022: p.136-152 |
| Journal Source | Journal of Contemporary China Vol: 31 No 133 |
| Key Words | China ; Chinese Characteristics ; Bad Banks ; NPL Market ; Non - Performing Loans (NPLs) |