Research On Non-performing Assets Securitization Of The State-owned Commercial Banks

The non-performing assets are a cosmopolitan problem . How to deal with the non-performing assets is also a difficult problem. In the long term, the bad loans are the bottleneck that puzzles the core competition of commercial banks, especially the four state-owned commercial banks. At last, the huge sum of bad loans may become the non-performing assets; this is a heavy cloth-wrapper for banks. The problem how to deal with the non-performing assets should be explored immediately.Asset Securitization is the process that converts the financial assets to securitization that can be sold and circulated on the financial market; furthermore, these financial assets are lack of liquidity but can produce future cash flow. The phylogeny of bank crisis in many countries shows: the non-performing assets securitization can accelerate the disposition of non-performing assets, reclaim cash in advance. Consequently, the non-performing assets securitization gain the time for going to reconstruct the banks. Asset Securitization is an effective method to deal with the non-performing assets. Securitization exploits a new efficient approach to deal with the non-performing assets, and inaugurate a new channel that connects the money market with capital market, at the same time, Securitization can deepen and promote the development of financial market. In conclusion, non-performing assets securitization is one of important tools to deal with the non-performing assets and remove the bank crisis. With the state-owned commercial banking reform and the deepened capital market, non-performing assets securitization is imperative under the situation.The paper starts with the cause of the non-performing assets of state-owned commercial banks; compare all the kinds of ways that deal with non-performing assets at present in our country, the conclusion is Asset Securitization is an effective method to deal with the non-performing assets. According to the present development of economy, the paper analyzes the necessity and feasibility of non-performing assets securitization. Aiming at the obstacle to push non-performing assets, the paper put forward some advices and countermeasures that push non-performing assetssecuritization.