Research On Financial Trust And Protection Supervision Mechanism Of Financial Asset Securities In Taiwan

In view of financial asset securitization legal system of special purpose trust part of Japan, a comprehensive comparison of foreign legislation to illustrate the problem of Taiwan legal system, and the beneficiary of point of view, the introduction of financial asset securitization Regulations special purpose trust law system is complete, and trust as the beneficiary, and whether the financial institution to issue securitization of goods at the appropriate and effective supervision mechanism to protect the beneficiary, and try to summarize theory and practice after the comments and suggestions. The securitization of financial assets to cover the issuance of commercial paper, mortgage, accounts receivable, commercial loans and other circulation issued by the transfer and after the re-packaging the stock, then sell it to interested investors. The main purpose is to improve the mobility of financial assets, financial institutions to raise funds to increase the pipeline. Special purpose trust framework of assets securitization of financial assets, is refers to by the originator revenue and disposition of assets:first, auto loans or other secured loans and guarantee right. Second, housing loans or other real estate loans secured creditor’s rights and the real right of pledge. Third, leasing debt, credit card debt, accounts receivable or other creditor money. Fourth, the right to benefit from the originator before three Institute of fixed assets and the trust industry to establish a trust arising from the contract. Fifth, approved by the competent authority of the other.One of the functions of financial asset securitization, the credit risk is assumed by the originator, securities issued and credit enhancement mechanism, were transferred to investors. Credit rating agencies will be in charge of in the process of securitization, the underlying assets with credit enhancement mode, to share, to reduce the risk of asset s credit target and reduce the effect of. Furthermore, asset securitization system is the asset as the foundation and the issuance of securities, it must have two mechanisms, one for assets separation, to isolate the originator of credit risk and the risk of bankruptcy; the issuance of securities, to pay the debt securities to cash flow of the asset separation. Therefore, asset securitization must let the securities securities principal and interest repayment is independent of the originator, and must establish a special purpose institutions or enterprises (SPV), as a separate asset transferee or holder, and achieve the bankruptcy isolation (Bankruptcy Remote), and must let the SPV must issue securities. Therefore, the design of investors is an important security mechanism, more lines to the control on the originator risk supervision system.