The China government has established four asset management corporations (AMCs) to absorb and manage the non-performing loans (NPLs) from state-owned banks from year 1999 to 2000. These four AMCs are:

1) Orient Asset Management;

2) Great Wall Asset Management;

3) Cinda Asset Management;

4) Huarong Asset Management.

These AMCs were exchanging the NPLs (risk weighting 100%) from state-owned bank for a 10-year bond issued by the AMCs (risk weighting 20%) at a full face value of RMB1.4 trillion. The AMCs 10-year-bond is paying 2.25% coupon per annum, which is the same as a one-year bank deposit rate during that time.

(i) Explain the benefits of this policy to state-owned banks.