Research On Non-performing Asset Securitization Of State-owned Commercial Banks In China

With the Asia Financial Crisis breaking out, it was one of the important reasons that there were giant non-performing assets in financial institutions. The problem of non-performing bank assets has become the international problem nowadays. In present, it is severe in our country. The problem of non-performing bank assets not only obstructs the promotion and development of economic system reform in our country, but also is the great hidden for our financial system.Asset securitization is the great financial innovation in these decades. It can improve bank mobility and profitability of assets by taking the credit assets outside the balance sheet, so it can been considered as the effective way to dispose non-performing assets of the bank. Non-performing asset securitization has made the good result in some countries. Researching the relevant problems of non-performing bank asset securitization in our country is the aim of this paper.Firstly, the paper estimates the quantity of non-performing asset, discusses the methods of dealing with non-performing asset and the related theories of asset securitization, which include the concept, feasible asset and economic explanation of asset securitization. On this basis, the paper discusses the necessity of carrying out the non-performing bank asset securitization in our country. Then, this paper probes into the feasibility of non-performing bank asset securitization from macro-economic system and cost-income angle. Afterwards, author puts forward to the countermeasures to the obstacles of practicingnon-performing bank asset secuntization in our country, meawile author puts forward to operation mode of non-performing bank asset secuntization in our country, according to the successful experiences of foreign countries and the reality of our country. Finally, we take some advices on this issue..