Study On Chinese Commercial Banks’ Personal Consumer Credit Loan ABS

This paper aims to analyze the case of Yongying 2015-1 consumer credit loan ABS.It is the first product that successfully solve the maturity mismatch between the personal consumer credit loans and securities by using the dynamic asset pool in China.Its product design and transaction structure have great and meaningful enlightenment.At the background of the expanding personal consumer credit market and the rising chance of ABS, this paper analyzes the motivation of securitization,the characteristics of the underlying assets and transaction structure,measure of the risk,product deficiencies as well as its future promotion possibilities by using related basic theory from the perspective of demand of commercial bank and product design.The analysis result shows this product has some advantages,such as high quality of the underlying assets,a reasonable transaction structure and the application of circularly buying the underlying assets.However,compared with foreign mature products,there are still several deficiencies in this product:the SPV of the ABS is lack of flexibility and the risk prevention measures are relatively weak.Therefore,this paper puts forward some relevant suggestions such as designing the double SPV or using Socialized Master Trusts to improve the flexibility of the ABS and strengthen risk control.Finally,by combining with the experience of the product for reference and its disadvantages,relevant advices about the design, risk management and market construction of the personal consumer credit loan ABS are given to other Banks in China.