Debt transfers come with cleaning incentives, and a new model for transferring banks' non-performing assets emerges.

Recently, Harbin Bank issued a notice to explain a debt transfer agreement disclosed in December last year. In this debt transfer process, some agreements on the transfer price have set collection conditions, which rely on the subsequent collection results of the underlying debt by Harbin Bank for redemption. Industry insiders believe that small and medium-sized banks disposing of non-performing assets in bulk may be motivated by the need to improve asset structure and enhance asset quality. The conditional debt transfer model may be used more frequently in the future in the non-performing asset disposal industry.