PBOC chief calls for risk exchange to price NPLs

China's central bank chief, Zhou Xiaochuan, is urging the establishment of a risk exchange market that would price banks' nonperforming loans and allow for their sale to entities willing to assume risk in exchange for the opportunity of high profits.

The risk exchange market would be designed to establish an effective internal mechanism to lessen the chance of new nonperforming loans, Zhou, the governor the People's Bank of China, told a forum in Beijing at the weekend.

Zhou also suggested givi