Study On The Issue Of Credit Card ABS In China

Securitization is one of the most important financial innovation in recent dozens of years. It makes the financial institutions, enterprises and capital market into more close connection and changes the international financial structure. There has been very deeply research and practice on this issue abroad. In China, the more emphases have been taken on the MBS (mortgaged-backed asset) and badness loans ABS. This paper introduces a new type of ABS-Credit Card ABS.Credit card ABS was first issued in 1987. From then on it develops very fast and now has become the primary fund resources for the card industry. Since the credit card receivables is revolving asset and different from the liquidating asset such as mortgage loan, credit card ABS has some distinction in deal structure; securities designing; cash flow managing. This paper expounds the principle and operation process of the credit card ABS in detail. Then it analyses the characteristic of card industry in china, comparing the domestic and foreign countries in developing stage, issuer and card features. By macro- and micro- analysis, from the size and quality of our credit card industry; the management of the issuer; the mode of account management and obstacles to practice ABS in china, the paper draws the conclusion that credit card ABS is not suitable for china in current stage. However, it has great potential in future.