Research On Non - Performing Asset Securitization Of Commercial Banks

In recent years, the overall macroeconomic of China is in the down space, the speed of economic growth started to slow down.With the economic structure began to adjust, the real economy enterprises, especially small and medium enterprises show some business risk. It had also affected the real economy and the bank. By the end of the second quarter of 2014, the balance of bad loans of commercial banks reached 694.4 billion,the mount of bad loans keep rising for the eleven consecutive quarter and hit a new high of nearly 3 years. Commercial banks bad loans "double", the capital adequacy ratio, provision for the coverage of the "double down", the loan to deposit ratio near 75% supervision red line. A large quantity of the bad loans and greatly influenced the development of the financial industry. The traditional way to dispose bad assets is legal procedure, material bonded to the reorganization, the transfer of assets, write off bad debts and so on.These ways are effective, but it cost a lot of time.To rapidly reduce the amount of bad loans, commercial banks need to optimize the structure of the balance sheet by asset securitization.Asset securitization use assets which lack of liquidity but can produce stable cash flow of backed securities. In this way, commercial banks can effectively and invigorated funds, improve the liquidity,reduce bad loans,and relevant ratios.Asset securitization has become the most significance way to disposal our country commercial bank bad assets.Since the Third Plenary Session of the eighteen, government has advocated the development of the bond market, encourage financial innovation, enrich financial market level and products, and improve the multi-level capital market system, make China’s credit asset securitization business healthy and sustainable development. The credit assets securitization will be more and more widely use in commercial bank of our country. Under this background, The paper firstly studies theories of research background and present situation of domestic and foreign research about bad assets securitization. Secondly, introduces correlative concepts and basic principles of bad assets securitization on the basis of the meaning and theories of non-performing assets securitization. Thirdly, analyze China’s regulation, policies and regulations, combined with the design and operation of actual case study of bad asset securitization. Finally, analyze various kinds of risks facing commercial bank bad asset securitization process, from the risk prevention, supervision and other aspects in order to provide counter measures for China’s commercial banks bad assets securitization.