The Research On Non-performing Asset Securitization Accounting Of Commercial Banks

In the past30years, asset securitization which is one of the most popular financial innovation in the international capital market has matured a lot along with the economic development, and the performance of asset securitization is becoming more complex along with the technological innovation. AS a means of structured financing, asset securitization separates the risks and benefits of the assets to enhance the liquidity assets and improve efficiency in the use of funds through a certain structure. It is due to the special features of asset securitization that make it an important way to deal with the non-performing assets of commercial banks in China. Through non-performing assets securitization, commercial banks can achieve the goal to transfer, segregate and handle the non-performing assets, through this way, commercial banks can adjust for bad debts, so that they can realize the plan of improving the business performance and increasing the liquidity of assets, also they can increase the capital adequacy ratio. Non-performing asset securitization is a systematic project which involves legal, accounting, financing and many other fields. Each of the factors plays an important role in the process of asset securitization. In order to provide objective and reasonable accounting system to protect this financial innovation, the research of non-performing asset securitization accounting is becoming more and more important. China’s asset securitization business started the "ice-breaking journey" in2005under the lead of government, by the year of2008, there have been16transactions of assets securitization, but most of the assets used to be securitized are fine assets, there are only4transactions use non-performing assets. Because of the low credit rating, non-performing asset securitization has to design complex business structure to realize the purpose of bankruptcy remoteness, so that more attention should be paid to the non-performing asset securitization. As one of the most important security system, accounting should be consummated in forward to guarantee that non-performing asset securitization can developed in a large scale in the future.The thesis mainly discusses the recognition, measure and disclosure of non-performing asset securitization by introducing and analyzing the basic principle and research results as well as research status of non-performing asset securitization. It also analyzes the existing problem in application of current standard by introducing the current situation of non-performing asset securitization, and tries to provide suggestions.The thesis adopts normative research method. This thesis can be divided into six parts:The first part is preface. It introduces the research background, research significance, research contents and research method, summarizes research status.The second part is research foundation. It introduces related definition and current status of non-performing loan in commercial bank in China, basic theory of non-performing loan in commercial bank, and hence accounting issues of non-performing asset securitization.The third part is about analysis of accounting recognition of non-performing asset securitization in commercial bank. This part focuses on analyzing accounting recognition of non-performing asset securitization in commercial bank, and analyzes problem in discontinuing recognition and provide suggestions by summarizing and commenting on the accounting standards and the practice of non-performing asset securitization in commercial bank in China.The fourth part is about analysis of accounting measurement of non-performing asset securitization in commercial bank. This part focuses on analyzing accounting measurement of non-performing asset securitization in commercial bank, and analyzes problem in practice and provide suggestions by comparing and commenting on the accounting standards.The fifth part is about analysis of information of non-performing asset securitization in commercial bank. This part focuses on the information disclosure of non-performing asset securitization in commercial bank, analyzes existing problems in practice, and provide suggestions based on the standards of FASB and IASB.The sixth part is conclusion.The author believes that, there are such problems as application of discontinuing recognition, defect of accounting measurement, and insufficient of information disclosure in practice, though the standard has already covered the recognition, measurement and disclosure of transfer of financial assets. The author tries to analyze the problems above and provide suggestions.