The New York City Police Pension Fund committed $50 million to buy small business loans made by Abacus Federal Savings Bank, a Chinese-American bank.
The pension fund will securitize the loans and resell them to the public, confirmed Leah C. Johnson, a spokeswoman for City Comptroller Alan G. Hevesi. Mr. Hevesi is a trustee of the pension fund.
Abacus will make loans primarily to businesses owned by Chinese-Americans, said Ms. Johnson. The fund has assets of $11.3 billion, according to the Money Market Directory.