The Study On Non-Performing Assets Securitization Of Chinese Commercial Banks

Assets securitization is the great financial innovation in the world's financial region in these decades,because it can improve mobility and profitability of banks'assets by taking the credit assets outside the balance sheet, it has been considered as the effective way to dispose bank's non-performing assets. Non-performing assets seuritisation has made good results in some countries. This paper takes the research on the relevant problems of non-performing assets securitization.The large scale and growing non-performing assets and the pending open-up of finance sector to the world compel Chinese commercial banks to take full advantage of their own ability to solve the problem of non-performing assets.In the early 1970s, securitization was principally appeared and developed quickly over the world. Now the measures that Chinese commercial banks and asset management companies take cannot meet the need of dealing with large scale of non-performing assets. So finding the best way of dealing is a big issue for the existence and development of commercial banks. Non-performing assets securitization has significant role in ensuring the stable development of our finance industry. It can decentralization of and reduce risk of Chinese commercial banks, improve the capital structure, increase capital adequacy and asset liquidity and improve the efficiency of the whole financial system.The paper cites and uses the existing research results and analysis methods for reference, combines positive and normative analysis, historical and comparative analysis, qualitative and quantitive analysis. At first, carries on the system reorganization and the analysis to the correlation data by the financial analysis tool and the SPSS, and then, takes evaluation analysis and credit analysis of non-performing assets securitization with the models of multi-regression and KMV.The paper firstly studies theories of research background and present situation of domestic and foreign research about non-performing assets securitization. Secondly, introduces correlative concepts and basic principles of non-performing assets securitization on the basis of the meaning and theories of non-performing assets securitization. Thirdly, analyze the status quo, reason for forming, feasibility and model selection of non-performing assets securitization. Fourthly, discusses detailedly about several technique methods, such as operational mechanism of non-performing assets securitization, determination of the assets pond, establishment of Special Purpose Vehicle, and then bring forward the whole flow design of non-performing assets securitization. Fifthly, it carries positive analysis of pricing and risk which are two important problems in the course of non-performing assets securitization. At last, it brings forward the model of non-performing assets securitization and the design scheme of trade structure aiming to the operation of Chinese non-performing assets securitization, in addition, it should strength the construction of law, system and environment and capital market in order to improve non-performing assets securitization of Chinese commercial banks. So the research on non-performing assets securitization of Chinese commercial banks has important significance both in theory and practice. The paper contains nine chapters and the content is as follows:Chapter 1: Introduction. It mainly contains background and significanceof the research, research on the current situation at home and abroad, important methods and content and innovation aspects.Chapter 2: The meaning and theory of assets securitization. In this chapter, it defines the concepts of non-performing assets and assets securitization.The basic theories of non-performing assets securitization contains cash flow analysis of basic assets, theory of assets reorganization, theory of risk isolation and theory of credit enhancement.Chapter 3: The present situation and feasibility of non-performing assets securitization. On the basis of the present situation and the forming reason of non-performing assets securitization, it points out assets securitization is an effective way for non-performing assets of Chinese commercial banks. Then detailedly analyzes the feasibility of non-performing assets securitization of Chinese commercial banks from both macro condition and micro demand, at last, it is the economic significance analysis.Chapter 4: The selection of non-performing assets securitization. This chapter firstly introduces non-performing assets securitization practices in the world and compares patterns of different countries. And then carries the research on condition of non-performing assets securitization selection and points out the main pattern which Chinese commercial banks adopt.Chapter 5: The operation of non-performing assets securitization. This chapter mainly contains the main form, operational mechanisms and several important operational techniques, such as determination of the assets pond, establishment of Special Purpose Vehicle and basic trade structure.Chapter 6: The pricing model of non-performing assets securitization and its application. This chapter takes the multi-regression model into non-performing assets valuation and combines case study into analysis.Chapter 7: The risk analysis of non-performing assets securitization. This chapter firstly analysize all kinds of risks in the course of non-performing assets securitization and indicates the credit risk is the most important. Then compares several common risk models and carries on positive analysis of credit risk by KMV model.Chapter 8: The countermeasures and advices of non-performing assets securitization. It mainly contains technique strategy, system construction, market environment and risk prevetion, etc.Chapter 9: Conclusions and prospect. At present, we strive to resolve the problem how to dispose non-performing assets.The important work for the future is how to prevent the creation of non-performing assets and tries to construct and implement relative mechanism in order to control the rate of non-performing assets in an acceptable range.The paper analysize the meaning, present situation and feasibility of non-performing assets securitization of Chinese commercial banks, and points out Chinses pattern on the basis of the comparation of other countries'pattern, then discusses detailedly operational mechanism of non-performing assets securitization combined with the case study. The study is hoped to offer operational advices for non-performing assets securitization of Chinese commercial banks.