Hang Seng Bank, a major banking and financial services company in Hong Kong and Mainland China, is facing growing concerns over non-performing loans.

The company, along with several other large banks in the region, is reportedly discussing the establishment of a “bad bank” to manage and resolve these soured debts. This move is seen as a response to the significant increase in non-performing loans among Hong Kong lenders.

Key points regarding the discussions:

• The talks are still preliminary
• Significant hurdles need to be overcome before the idea can be put into action
• The establishment of a “bad bank” is being considered as a potential solution to manage and resolve non-performing loans

Hang Seng Bank’s non-performing loan situation is not an isolated issue, as other large banks in the region are also facing similar challenges. The exact details and outcomes of the discussions are yet to be determined.