Research On Domestic Commercial Banks’ Green Credit Assets Securitization

In order to continually promote the healthy development of economy and ecology,China has gradually improved the green financial service system in recent years.The product are mainly green credit and green bond in domestic green financial market.If we want green finance to develop in a better direction in the future,the product must be innovative.At present,the scale of domestic commercial banks’ green credit is increasing.The liquidity of green credit assets is weak because the green industry has characteristics of large investment and long payback period.The emergence of green credit assets securitization,an innovative product,can help commercial banks improve the liquidity of green credit assets.Due to the short development time,domestic commercial banks still lack business experience in green credit assets securitization.By 2019,domestic commercial banks have only issued six products.In the future,the green credit assets securitization market will flourish with policy support and market promotion.This paper studies how commercial banks can better develop green credit assets securitization business under this background.China Construction Bank is one of the state-owned commercial banks."19Feichi Jianrong " is the first green credit assets securitization product issued by China Construction Bank.At the same time,the total amount of the product’ basic assets pool is the largest among domestic similar products because it is 4.412 billion yuan.In addition,compared with other similar products,the result shows that "19 Feichi Jianrong " has its own characteristics in the core element of the product,so it has research significance to carry out case analysis of product.During research,this paper mainly uses two methods.On the one hand,this paper selects "19 Feichi Jianrong " to comprehensively analyze through case study method.On the other hand,this paper analyzes the variation of capital structure,assets liquidity and stock return rate by using quantitative analysis method.Moreover,the second method mainly includes financial index analysis method and event research method.During case analysis,by comparing "19 Feichi Jianrong " with other issued products,this paper finds that it has the following characteristics in terms of core elements.The first characteristic is high concentration of basic assets.In terms of the borrower,the basic assets mainly comes from the top five borrowers.In terms of the concentration of green project,the basic assets is mainly concentrated in the clean transportation.The second characteristic is the addition of credit enhancement methods.The case product not only adopt the hierarchical structure design and credit trigger mechanism,but also increase the trust reserve account.The third characteristic is the third party green certification.The case products meet the green evaluation standards of the two third-party institutions.It proves that "19 Feichi Jianrong " has the green attribute.The fourth characteristic is the disclosure of risk mitigation measures."19 Feichi Jianrong " not only discloses investment risk tips,but also discloses risk mitigation measures.According to the results of case analysis,this paper further summarizes the case enlightenment.Commercial banks should disperse the selection of basic assets,enrich the way of credit enhancement,carry out third party green certification and strengthen information disclosure when issuing products.In addition,for the problems which exists in domestic market,this paper also puts forward three suggestions.The first suggestion is including increasing government support.The second is optimizing the requirement of risk supervision.The last is perfecting the relevant legal system.