Currently, there are 15 provincial governments in China that have 'bad debt bank'. Anbound’s research team is of the view that as the use of ‘bad debt bank’ is increasing common, it will soon become a standard feature for all provincial governments.

However, the existence of ‘bad debt bank’ does not mean there is additional safe for local debt problems, nor does it mean the local governments can leverage freely to continue development through debt expansion.

The local governments should be more cautious in future development.