FISTCs are similar to special purpose vehicles (or SPVs) created in the aftermath of the Asian Financial Crisis to help banks get rid of their bad assets. Under the proposed bill, tax exemptions and other incentives will be granted to encourage the creation of FISTCs.
As a result of a requirement to apply competition law, it was necessary to value and transfer loans individually. This made the transfer process a relatively lengthy one, which worked against the objective of moving quickly to cleanse balance sheets.