Debt transfer with collection incentives: A new model emerges in bank non-performing asset transfers

Recently, Harbin Bank issued a notice explaining a debt transfer agreement disclosed in December of last year. During this debt transfer process, some of the transfer price agreements included payment conditions that depend on Harbin Bank’s subsequent collection results of the underlying debt to be fulfilled. Industry insiders believe that small and medium-sized banks dispose of non-performing assets in bulk, possibly to improve asset structure and enhance asset quality. The conditional debt transfer model may be more widely adopted by the non-performing asset disposal industry in the future. (China Securities Journal)