Improving Debt Provisioning by Chinese Financial Institutions: New Ministry of Finance Rules
October 31, 2005 | BY
clpstaff &clp articlesCurbing non-performing debts on the books of China's financial institutions remains one of the economy's most pressing concerns. To this end, the Ministry of Finance has issued measures requiring financial institutions to set aside provisions for debts based on their underlying risks.
Share:
By Michael G. DeSombre and Weiheng Chen, Sullivan & Cromwell LLP, Hong Kong
On May 25, 2005, the PRC Ministry of Finance (MOF) issued Measures for the Administration of Debt Provisioning by Financial Institutions (金融企业呆账准备提取管理办法)(the 'Provisioning Measures'), which became effective