Research On Credit Assets Securitization Of Industrial And Commercial Bank Of China

The sub-prime mortgage crisis caused panic in globle capital market, real estate ecomomy in US also suffered a lot from it. Securitization of mortgages is blamed due to the risk shifted from the mortgage issuer to investors at large. Though ICBC issued8billion credit asset securitization in the first half of2008, which is the biggest volume in China, ICBC still should draw lessons from the sub-prime mortgage crisis. This research analyzed the necesstity and feasibility to develop asset securitization based on the ICBC’s background information. After investigating the present status and problems of ICBC’s asset securitization,proposals are suggested. This research has the most important significance for ICBC to change its business development stratege. In order to change its role from the biggest lender to a financial service provider, accelerating the development of securitization products is ICBC’s significant solution.This research has6chapters. The first chapter propose the reason of sub-prime mortgage in U.S and also its influence on the world; The sencond chapter introduced the concept and procedure of securitization, also its effects on commercial banks; The third chapter analyzed the present status of securitization in China; The fourth chapter analyzed the necessity and feasibility for ICBC to develop securitization; The fifth chapter analyzed the present securitization products of ICBC and its problems; The sixth chapter is the most important part, which gives the suggestions for ICBC to develop securitization:focus on quality of assets, assure real sale, strengthen risk management, disclosure information dearlly, has different layers, adopt master trust, enlarge assets kinds.