Study Of Commercial Bank Asset Securitization Legal Issues

The Asset Securitization, known as"the alchemy"was born in the US. Since the 1970s, it has found favor with the world capital market, and has always been developing prosperously in the past 30 years. The Asset Securitization, as a kind of innovative finance tool, will be able to create a broader and directer financing outlook for the general enterprises and the general investors, greatly promoting the development of the direct finance in China's financial market because of its exquisite structural design and the reliability. Compared with the ordinary stock and the bond, the Asset Securitization has drawn more attraction. To introduce the securitization financing tool has the vital significance to develop China's housing mortgage loan and the long-term expense credit market and handle the bad property in banks. Although the Asset Securitization has already been mature in the US and other developed countries, it is actually newly emerging in our country. The hysteresis quality of present legal system in our country will inevitably have a hindrance to this superior financing pattern. The Asset Securitization is one kind of financial innovation, and its operation involves the negotiable securities, the guarantees, the non-bank financial services and many other aspects. The operation process is extremely complex. If the complicated legal relationship between the correlative litigants isn't adjusted by canonical legal system, and every link isn't ensured to function well, it is likely to cause the financial risk out of control, bringing a bigger economic crisis. Therefore, it is an imminent task to learn from the experience on the asset securitization legislation in the developed countries, study the legal problems we possibly face when carrying out the Asset Securitization and then seek the approaches to solve the problems. This article analyzes the necessity and importance to develop the Asset Securitization in commercial banks in China, and it analyzes the basic legal problems of developing the Asset Securitization services in commercial banks in China and other legal documents. The writer consulted overseas legislation experience, and proposed correlative advice to the Asset Securitization legislation in China.