Asia Pacific: Fighting the zombies

Author: | Published: 20 Apr 2016

China has unleashed an onslaught against its billions of non-performing loans (NPL), which have permeated much of its banking system. With major state-owned banks saddled with piles of distressed debt, Beijing has pulled out all the stops to extinguish the circulation of soured loans within the national financial system.

As a seemingly desperate measure taken in desperate times, an earlier plan set by eight financial regulators to allow designated banks to bundle bad loans into securities has surprised both...