Study On Models Of Commercial Banks’ SME Loan Securitization

SMEs, summing up to1042, that contributed60%in GDP and80%in creatingemployments have made a great feat with the boosting growth of economy and a steadyharmony of society. Therefore, it is necessary to build a professional and effective financingplatform of SMEs to support the them. Meanwhile, as the main source of SMEs’externalfinancing(more than90%), commercial banks became a negative factor for their monetarycontraction. We are trying to resolve the problem in the perspective of loan securitization.The opaque of SMEs’financial systems and high operational risks lead to asymmetricinformation between banks and enterprises which results to credit rationing. Through thesecuritization of SME loan pools, credit risks are transferred from banks to investors. Itsignificantly increased enthusiasm of banks’lending loans to SMEs, by the means of true saleand credit enhancement which will decrease capital control tax, increase return of capital andliquidity. The advantages and requirements of SME CLO is demonstrated in the thesis. After acomparative study of two models of SME CLO from Europe and a case study of ZY2008-1SME CLO,it is concluded that cash flow type of CLO is more suitable under currentconditions.