The Study Of Commercial Bank Non-performing Asset Securitization In China

The Non-performing Asset (NPA) problem of commercial banks in our country has last for a long time. The large amount of NPA has accumulated enormous financial risks, and has baffled the lasting sound development of the banking and financial system and even national economy of our county. Although commercial banks and assets management companies (AMC) had made some progress in dealing with NPA, they still need innovative disposal method to accelerate the disposal of huge NPA.The securitization of NPA has already become one of the important method to handle NPA. It can improve the structure of bank credit loans and better bank mobility and profitability of assets by taking the credit assets of the bank. NPA securitization has made good result in many countries so that we can figure out a NPA securitization method with Chinese characteristics based on foreign experience.This paper firstly introduces the definition and theory of Asset Backed Securitization, including analysis of concepts, theoretical foundation and operating principle, and analysis of characteristics of NPA securitization. Secondly introduce the profile of NPA, then analyze the shortage of current disposal methods and the advantage of NPA securitization. Thirdly analyze the feasibility of NPA securitization and discuss the general operation process of NPA securitization. At last, based on the latest NPA securitization case in china, we try to find out the difficulties in NPA securitization and make some suggestions.