The Study On Bad Commercial Bank Asset Securitization

With the Asia Financial Crisis had breaking out, it was one of the important reasons that there had been giant bad bank assets in finance institutions. The problem of bad bank assets has become the international problem in this day. In present, it has also been severe in our country. The problem of bad bank assets not only obstructs the promotion and development of economic system reform in our country, but also has been the great hidden for our financial system.Asset securitization is the great financial innovation in these decades. Because it can improve bank mobility and profitability of assets by taking the credit assets outside the balance sheet, so it been considered as the effective way to dispose bad assets of the bank. Bad asset securitisation has made the good result in some countries. Researching the relevant problems of bad bank asset securitization in our country is the aim of this paper.Firstly, this paper analyses the current situation and the cause of bad bank asset in our country, and has analyzed the basic principle of the asset securitization. On this basis, the paper discusses the necessity of carrying out the bad bank asset securitization in our country. Then, probing into the feasibility of bad bank asset securitization from macro-economic system and cost-income angle. Afterwards, author puts forward the countermeasures to the obstacles of practicing bad bank asset securitization in our country. Finally, author puts forward the ideas of operation mode of bad bank asset securitization in our country, according to the successful experiences of foreign countries and the reality of our country.