Date
12 December 2017

Shanghai banks slash steel trade credit risk, paper says

Outstanding loans of steel traders with Shanghai banks have shrunk to just over 80 billion yuan (US$12.89 billion) at the end of 2013, sharply down from over 280 billion yuan at the end of 2011, the Shanghai Securities News reported Wednesday, citing the local bureau of the China Banking Regulatory Commission. The establishment of a chattel mortgage information platform has been the key to reducing the banks’ credit risks, enabling the lenders to check if the same stockpiles of steel are being used as collateral by merchants to secure multiple loans from different banks, the report said. 

– Contact HKEJ at [email protected]

EL/AC/CG

 

 

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