On Asset Securitization In China's Financial Institutions Of Bad Assets Used In The Processing

In recent years, the problem of the inefficient assets exists in Chinesemonetary system has begun to widely attract public attention. Through the analysis to the principle of the Asset Securitization and the successful abroad experience on such a question, this paper points out the Asset Securitization is one of the available means to solve the problem. This financial instruments, the Asset Securitization that can be used based on the further innovation to the traditional means of the Asset Securitization and the investment. The paper indicates that the monetary system reform must be further intensified, so as to change the systematical factors that are unfavorable to or restrict on the financial innovation, this is also the prerequisite of carrying out the Asset Securitization. Meanwhile, the related securitization design proposals is put forward over the three main assets by the assets administrative departments after receiving the inefficient loan from the state-owned commercial banks, and also a practical analysis is offered according to the related current systems and environment in China. The three parts of the paper are as follows:First, the implication, agent for development, running mechanism and risk income are individually commented and analyzed. The Asset Securitization is the suitable way to solve the problem of inefficient assets according to its new developing situation and the comparative experience from abroad. Second, the necessity and practicability are further discussed when carrying out the inefficient Asset Securitization in current China, and the three different kinds of securitization proposals are applied to the three main assets after the asset administrative department receiving the inefficient loan from the state-owned commercial banks. Last, the difficulties in operating the inefficient Asset Securitization in current China is studied in this paper. Furthermore, it put forward the proposal on policy and the construction of macro-environment.