Debt Equity Conversions and NPL Securitization in China: Some Initial Considerations

By James Daniel, Jose M Garrido, Marina Moretti

April 26, 2016

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James Daniel, Jose M Garrido, and Marina Moretti. Debt Equity Conversions and NPL Securitization in China: Some Initial Considerations, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This note considers the role debt-equity conversions and NPL securitization can play in addressing excessive corporate debt in China, and the corresponding burden on banks of impaired assets. It finds that such techniques can play a role, but getting their design right is critical, as is nesting them within a comprehensive, system-wide, plan.

Subject: Banking, Distressed assets, Financial institutions, Financial sector policy and analysis, Financial services, Loans, Nonperforming loans, Securitization, Stocks

Keywords: Asset, Asset quality, Bank, Bank lending, Bank ownership, Bank regulation, Borrowing, Corporate restructuring, Credit, Debt, Debt-equity conversion, Distressed assets, East Asia, Equity, Equity holding, Global, Governance, Insolvency, Liquidation, Loan, Loans, Non-performing, Nonperforming loans, NPL securitization, Securitization, Shares, Stocks, TNM

Publication Details

Pages:

9
Volume:

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DOI:

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Issue:

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Series:

Technical Notes and Manuals No. 2016/005
Stock No:

TNMEA2016005
ISBN:

9781513524153
ISSN:

2075-8669

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