Asset-backed securities (ABS) with underlying assets of credit card bad loans are on the rise in China, as 14 ABS backed by credit card bad loans totaling RMB4 billion (US$610 million) were issued from 2016 until the end of April 2018. A pilot program were introduced in 2016 to experiment this approach to manage credit card bad loans. The growth rate of ABS backed by credit card bad loans is accelerating. Ten credit card bad loan-backed ABS were issued with …

Chinese Banks Turn To Asset-Backed Securities To Deal With Rising Bad Credit Card Loans appeared first on China Money Network.