Non-performing Loan Securitization In China

The article mainly discusses the significance and feasibility of the non-performing loan securitization in China, brings forward the thinking ofconcrete operation and makes an analysis of its difficulty and thecountermeasure. The article is developed in four sections fIn the first section, the author discusses the definition and operation ofassets securitization and exPounds from macro to micro aspects the necessityof the non-performing loan securitization in China.In the second section, the allthor focuses on the feasibility of the non-per-forming loan of Chinese banks securitization in four pats. First, he discussesin theory the necessary conditions of asset securitisation, the classificationof non-performing loan of Chinese banks as well as the standard to decideasset securitization. F[lrthermore, he exPlains the method and approach tochoose asset for securitization and the remedy of the problem ofsecuritization. Secondly, he constrUes how the modern financial technology(include mathematic analysis, remedy technology for system disfigurementand combination technology) suPports the securitization of non-perfOrmingloan. Thirdly, the author discusses what and how China can leam from theUSA experience of non-performing loan securitization. FourthIy, based onthe analysis of the influence on non-perfOrming loan securitization by theexternal environment, he concludes that it is feasible fOr such securitizationin China.In the tl1ird section, the author puts forward the guideline and approach ofsecuritization for non-perfOrming loan of Chinese banks.In the fowth section, the author analyses the difficulties of the non-performing loan securitization in the aspects of the price of non-performingloan, the role of investor and government, the cost of securitization and themacro and micro conditions. In the end he raises some countermeasure forthe above difficulties.