Move made to help deal with increasing risks faced by banks from bad assets

Local governments might be allowed to handle their nonperforming assets in a broader way to tackle the increasing risks feared to exist in China's banking system, according to the country's banking regulator.

The China Banking Regulatory Commission said in a document that asset management companies at the provincial level will be able to sell their bad assets to other provinces as well, instead of only via transactions within the province, Economic Information Daily reported.