Study On Applying ABS In China's Banking Industry

ABS arised from America in 1970's. It is one of the most important and fastest developed financial innovation business in international financial field. Early in 1990's, China attempted ABS through issuing a number of kinds of ABS products in international capital market. However, internally ABS has not yet been really put into practice for a long period. Till March 2005, the startup of credit ABS experiment and the matched policies' putting into effect indicated that ABS has eventually become true after so many years' controversies on it. This essay makes a study on how to apply ABS into our banking industry. It introduces successful ABS experiences of foreign countries on price, accounting, taxation, legislation and intendance. Keep to the latest development of the internal ABS experiment, the essay analyses and appraises the current measures and regulations, and presents views on the issues that the existing policies has not yet involve in. On the end the essay put forward some suggestions to apply the ABS to China's banking industry. The essay consists of five chapters.Chapter one introduces the concept, characteristic and basic bargaining structure of ABS, analyses its economic significance from the point of financing efficiency, and finally points out the practical significance of applying ABS to our banking industry.Chapter Two introduces the development of ABS in China, its present status and current environment.Chapter Three stresses on pricing, accounting, taxation, legislation and intendance involved in applying ABS to China's banking industry, introduces foreign countries successful experiences and the applications in our country, and points out in which aspects we should still make use of foreign experiences according to China's practice.Chapter Four gives suggestions on applying ABS to our banking industry, indicates the emphasis of current work are medium & long term loans and non-performing loans, moreover makes some suggestions on legislation, intendance and taxation.Chapter Five gives two examples, one is Taiwan First Commercial Bank's MBS, the other is RTC's NPLS, and analyses what we can learn from them.