Development Of State-owned Commercial Bank Asset Securitization Research

This article starts from the basic theory and operational mechanism of asset-backed securitization, then analyses the feasibility and necessity of asset-backed securitization in China, explores the obstacles , the entrance and basic model of asset-backed securitization in State-Owned Commercial banking, and finally, presents some policy suggestions.Asset securitization means the financial technique and the process to convert a group of assets lacking liquidity but capable of producing predictable cash income into the securities which can sell and circulate in the financial market. Originator, special purpose vehicle and investor constitute the basic transactional structure of it. The implementation of Asset Securization Transaction depend on the following three basic the ories: asset-recombinating, risk-isolating , credit-upgrading. The earlist Asset-Securitized transactional date back to our early 1970s and were the sale of pooled mortgage loans by the Government National Mortgage Association. These transaction soon followed by selling unmortgaged which can be securitized, and then thrive in the developed countries , newly-emerging nations and regions.In China, state-owned commercial bank is the difficulty and keynote of the financial reforming. The problems in it lie in:1) Poor operation situation and decreasing competition ability which symbolized decreasing asset flowablity, insufficient equity capital, huge bad asset and centralization of financial risk; 2) Uncertain operation surrounding which comes from the incoming of foreign bank and the developing of financial securitization with China's entrance into the WTO and the globalization and synthesization on finance. Asset securitization, which transfers inflexible loans into security through operation outside asset-debt form, could increase credit capital's flowablity, improve capital adequacy ratio, decentralize financial risk and handle bad assets.This article holds: at present, asset securitization in China is restrained under the condition of law, accounting and tax revenue. In order to promote asset securitization, we should strengthen the construction of institution for its guarantee. Besides this point, we should take the securitization of housing mortgage as the penetration pointto promote the securitization of bad asset. Under the present Chinese legal surrounding, we'd setter develop its model from inside asset-debt form to off-balance sheet, and Asset trust is the better choice for the securitization of bad asset.