Research On Commercial Banks' Non-Performing Asset Securitization In China

The large amount of non-performing assets in China's commercial banks has become one of the largest obstacles to China's financial system reform. These vast non-performing assets have threatened the development of China's economy as well as the security of its financial system. Whether being able to resolve the difficult problem effectively is the key factor being related to China's reform of the financial system and economic development. AS a financial innovative tool, non-performing asset securitization (NPAS) has a lot of useful experience in abroad for years. It has notable advantages in shifting risk, improving flowability and creating credit. NPAS plays a significant role in ensuring the stable development of our finance industry. It can decentralize and reduce the risk of our commercial banks, improve the capital structure, increase capital adequacy and advance the efficiency of our banking system.The aim of this paper is researching on the relevant problems concerning NPAS in China. Chapter One will briefly introduce the background, purpose, significance and the situations both in China and abroad. Chapter Two will discuss the definition of NPAS and analyze the related theories of asset securitization. Chapter Three will analyze the implementation examples of non-performing asset securitization in the countries of the United States, South Korea and Japan. Based on the analysis, I will sum up the common characters and differences among these cases and put forward the feasible methods that can be applied in China. Chapter Five will discuss the significance of carrying out the non-performing asset securitization in China and points out the obstacles in developing the non-performing asset securitization. Chapter Six will list some suggestions and ideas on the innovation of the non-performing asset securitization in our country.