The Research On Asset Securitization Of Nonprofit Microfinance Institutions

Since the early 1990s Nonprofit Microfinance Institutions were introduced into China up to now, their developments have achieved rapid results. As the microfinance leaders of China, Nonprofit Microfinance Institutions have made a contribution to the improvement of rural financial system and the development of poverty alleviation. However, some problems make the Nonprofit Microfinance Institutions develop slowly and lack of vitality, such as limited funding, the loan principal gap, financing difficulties and so on. In order to address these problems effectively, our country has amended the relevant policies and measures to reduce the threshold for implementing asset securitization business, Nonprofit Microfinance Institutions can make farmers’ loans receivable claims flowable by asset securitization and mitigate the situation of capital shortage. In this context, the research on asset securitization of Nonprofit Microfinance Institutions will have a special significance and practical value.In the first chapter, this paper describes the background and significance of asset securitization of Nonprofit Microfinance Institutions, including domestic and foreign researches. Then the paper points out the theoretical basis of asset securitization of Nonprofit Microfinance Institutions in the second chapter. Third chapter focuses on the causes and the feasibility of asset securitization of Nonprofit Microfinance Institutions. In the fourth chapter, this paper describes the first Nonprofit Microfinance Institution’s securitized product in China that is CFPA’s securitized product, including its financing background, operational processes, and guidance. The fifth chapter combines the case of CFPA and specific reality, pointing out restricting factors of asset securitization of Nonprofit Microfinance Institutions and making some targeted suggestions. At last, the sixth chapter summarizes the conclusions.