Ten banks announced a refinancing plan worth as much as 348.2 billion yuan ($57.3 billion) this year, implying great pressures on capital flow in the banking industry, Beijing-based Securities Daily reported.
China Minsheng Banking Co. Ltd., Industrial Bank Co. Ltd., Bank of Chongqing Co. Ltd., Huishang Bank Co. Ltd., and China Everbright Bank Co. Ltd. were some of the banks to carry out refinancing.
More than 200 billion yuan ($32.94 billion) will be generated by sub-prime loans, relieving the capital crunch of many commercial banks.
Industrial and Commercial Bank of China Ltd. announced in January 2013 that it would issue no more than 60 billion yuan ($9.88 billion) of sub-prime loans before the end of 2014.
In July 2013, Bank of China Ltd. also announced that it will issue no more than 60 billion yuan in sub-prime loans.
China Everbright Bank gained approval to issue no more than 16.2 billion yuan ($2.65 billion) of sub-prime loans in September 2013.