China Banking Regulatory Commission, Opinion on Effectively Safeguarding against the Risks of Providing Security for the Issuance of Bonds by Enterprises
中国银行监督管理委员会关于有效防范企业债担保风险的意见
CBRC stops security provision for corporate bonds.
Date:
November 2007
CLP Reference: 3520/07.10.12
Promulgated: 12 October 2007
Keywords (click to search): [CBRC] [corporate bonds] [enterprise bonds] [debt instrument] [debt security] [collatoral]
CBRC stops security provision for corporate bonds.
Issued: October 12 2007
Main Contents: All banks shall cease to provide security for bonds issued by enterprises that are mainly used to finance projects. In regard to other financing projects such as enterprise bonds for other purposes, corporate bonds, trust plans, earnings plan of insurance companies and special asset management schemes of securities brokers, no security shall be issued by banks in principle. Where a bank has already provided security, it shall adopt measures to withdraw gradually, and add necessary asset preservation measures in a timely manner (Article 3). Off-balance-sheet contingent liabilities such as security provision shall be included under unified credit granting management (Article 4).
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