SHANGHAI, Sept 29 The Industrial and Commercial
Bank of China (ICBC) , China's largest
bank, has successfully issued 1.077 billion yuan ($161.46
million) of non-performing asset-backed securities, the bank
said in a media release.
The sale was oversubscribed, the bank said, without giving
Bad loans have been rising rapidly at Chinese banks as the
economy has slowed, and repackaging them in asset-backed
securities (ABS) for resale has been one solution proposed by
The issuance marked the first this year by ICBC, following
earlier issues this year by the Agricultural Bank of China
, China Merchants Bank
and Bank of China .
The non-performing loan ratio in China's commercial banking
sector was 1.81 percent at the end of the first half of 2016, up
from 1.75 percent in March, China's banking regulator said in
Non-performing loans at Chinese commercial banks had hit an
11-year-high of 1.4 trillion yuan in March.
Many analysts have long suspected that real levels of bad
loans in China are much higher than official data and banks'
earnings reports suggest.
This year's largest ABS issuance was by the Agricultural
Bank of China at 3.1 billion yuan in July.
($1 = 6.6704 Chinese yuan)
(Reporting By Nathaniel Taplin; Editing by Biju Dwarakanath)