Study On The Securitization For The Non-performing Assets Of Commercial Banks In China

Asset securitization was the most important financial innovation in the international financial realm in the recent 30 years, and developed quickly. It is regarded as one of effective ways in settling the problem of non-performing assets (breviary NPAs) owing to the fact that it can improve bank mobility and profitability of assets by taking the credit assets outside the balance sheet. It is efficient in dealing with the NPAs in other countries. On the aspect of disposing NPAs with asset securitization, we have been discussing it theoretically for a long time, but practice it recently.This paper attempts first to introduce the development of non-performing assets securitization(breviary NPAS) , and then discuss how to process according to status in quo in China to make use of Asset Securitization more effectively and efficiently in handling with inferior assets in commercial banks. The article includes following six sections:The first chapter is the exordium, introducing the background of the topic, the domestic and overseas researching actuality and the literature review, etc;The second chapter analyzes the formation of non-performing assets under the property right System of Banks by establishing a two—staged dynamic game model, then with the brief of the causation of the NPA.The third chapter talks about the running theory of NPAS, then, according to the actual situation of China's bad assets, the necessity and practicability are further discussed when carrying out the inefficient asset Securitization in current China.In the fourth section, The price of the securities issued is first ascertained, then calculate the proceeds of securitization, including the accounting profit and loss. Next, investigated the current credit risk models and proposed the modified KMV model to measure the credit risk in china. Then applying the KMV model to compute the expected default probabilities.In the fifth section, conduct in-depth and delicate analysis of the Ningbo branch of the Industrial and Commercial Bank of China's non-performing asset securitization case, point out the merit and deficiency, including accounting profit and loss.The last part the author puts forward the guideline and approach of securitization for non-performing assets of Chinese. The discourse also probes into the credit enhancement design in the securitization for the NPL, and puts forward the countermeasure correspondingly.