Study Of Bank Asset Securitization Legal Issues

Securitization of bank assets refers to combined management and investment activities in which commercial banks, by making use of the legally representable nature of their credit assets and other claimable credits, put certain assets into asset-pools, issue asset-backed securities backed by the assets in the pools in order to transform the illiquid credit assets into cash assets. Then the asset-backed securities are entrusted. Upon the expiration of the securities'terms, the underlying assets are realized to repay the principals and interests of the securities.This thesis holds the following basic opinions on the legal system related to commercial banks issuing asset-backed securities. First, establish a credit=gathering system, use asset-pools to concentrate and maintain a minimum amount of assets. Assets in the asset-pools should include almost all the commercial banks'credit assets, bill assets and credit card assets. The thesis has carried out a deep analysis on the legal nature of the above-mentioned assets and asset-pools. The author holds that all bank assets that can be realized are securitizable and the establishment of asset-pools is a necessary basic condition to the securitization of bank assets. Second, credit rating of the assets in the asset-pools should be carried out, so that the requirements of the Securities Law and other relevant laws and regulations are met, and investors'right to know the quality of the underlying assets is satisfied. The author holds that credit is the basic condition for any transactions in the market. For financial assets that is neither tangible assets nor intangible assets, there should be statutory credit rating requirement to assure transaction safety in the market. Third, the benchmark of credit rating should be...