China expedites local government debt issuance to bolster capital of smaller banks

A China yuan observe is seen on this illustration picture Could 31, 2017. REUTERS/Thomas White/Illustration/

BEIJING, July 17 (Reuters) – China’s banking regulator has labored with the finance ministry and central financial institution to speed up the issuance of particular native authorities bonds to assist complement the capital of small and medium-sized banks, China Banking and Insurance coverage Information reported.

The central authorities will take a number of measures to reinforce the capitalisation of small and medium-sized banks and construct up their resistance to dangers, the state-run newspaper reported late on Sunday, citing an unnamed official on the China Banking and Insurance coverage Regulatory Fee (CBIRC).

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In January to Could, small and medium-sized banks disposed of 394.3 billion yuan ($58.4 billion) of non-performing loans, up by 107.2 billion yuan from a 12 months earlier, China Banking and Insurance coverage Information reported.

To strengthen the capital of small and medium-sized banks, a mixed quota of 103 billion yuan of particular native authorities bond issuances was granted to the provinces of Liaoning, Gansu and Henan and the northern port metropolis of Dalian within the first half of 2022, based on the newspaper.

Within the close to future, different native particular bond issuance plans will likely be accepted, and it’s anticipated that the general quantity of 320 billion yuan will likely be distributed by the top of August, the newspaper added.

($1 = 6.7565 Chinese language yuan renminbi)

Reporting by Ryan Woo; Modifying by Frank Jack Daniel

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