Banks may gain from securitized debt sector
Print Edition
BANKS in China may gain from the growth of China’s asset-backed securities market which expects to draw more non-banking investors to trade securitization products, Fitch Ratings said in a report yesterday.
Liquidity in the banking system may also get a boost with their entry as the regulator introduces greater operational flexibility and encourages expansion and opening-up of the market, the rating agency added.
Securitization refers to the practice of pooling debts like mortgage, auto loan, credit card debt and corporate loan to a third party as securities.
The People’s Bank of China’s latest data showed there were 300 billion yuan (US$48.3 billion) in outstanding securitization products in China at the end of April, and Fitch believes there is scope to grow this year.
In April, the PBOC said it would no longer require regulatory approval to issue securitization products, and on May 13, the State Council approved an extra quota of 500 billion yuan for the trial program.
China launched the securitization business in 2005 but stopped it during the 2008 financial crisis.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
