Research On Commercial Bank Asset-securitization In China

With the rapid growth of China’s commercial banks, their problems in its development process are gradually emerging. Liabilities in China’s commercial Banks are most individuals’ and corporate customers’ demand deposits, but their assets are most long-term loans, which led to commercial banks’ assets mismatch with their liability, in June 2013 the outbreak of the country’s commercial banks "money shortage" is a concentrated expression of the problem. So how to solve the mismatch of commercial banks’ assets and liabilities and strengthen liquidity of commercial banks become the main direction of our country’s financial reform, the credit asset securitization is undoubtedly one of the most direct and effective financial innovation tools. The United States and other countries commercial bank credit asset securitization successfully carried out, indicating that the credit asset securitization is indeed a very good solution.Currently, commercial banks’credit asset securitization in China has just been in its infancy, commercial banks and China Banking Regulatory Commission and other regulatory authorities are supportive on the securitization of credit assets, there is great development prospects of their future, while the securitization of credit assets are professional and complex, which need various participants, including sponsors, issuers, special purpose company (SPV), credit rating agencies and so has a strong professional, at the same time, commercial banks must have certain risk management capabilities in carrying out the process of securitization of credit assets, and strictly control risks arising in this process. Given the complexity of the credit asset securitization business in our commercial banks, it is necessary to conduct a comprehensive analysis of its operational processes, pricing of the underlying assets, operating mode selection, commercial bank credit asset securitization Problems to accelerate the process of securitization of credit assets of commercial banks.Firstly, we analyze the basic principles of commercial banks’ credit asset securitization, operational processes, risk and pricing from a theoretical aspect, in order to explore the feasibility of securitization of credit assets in the asset management of commercial bank, by demonstrating that China’s commercial banks can manage their assets and liabilities through the securitization of credit assets to improve the liquidity of commercial banks credit assets.Secondly, we summarize and analyze the business of credit asset securitization of Chinese commercial banks, we find that our commercial bank credit asset securitization business is still in the exploratory stage practice, with a small market size, variety of underlying assets, good quality of infrastructure assets, high levels of credit, illiquid credit asset securitization products, explore the problems and difficulties of commercial bank credit asset securitization.Again, we provide some suggestions from the credit asset securitization legal system and institutions, credit rating agencies to cultivate, the credit asset-backed securities issuance and trading, pricing, the underlying asset classes and other aspects to develop credit asset securitization business of China’s commercial banks, trying to clear obstacles of China’s commercial banks credit asset securitization business.Finally, we study the issued asset-backed securities case mainly from the credit risk of asset-backed securities, cash flow of product structure, the level of interest rates support and other aspects of the analysis of the asset-backed securities issued by Agricultural Development Bank of China and attempt to analyze the asset-backed securities’ credit problems and countermeasures in order to provide a reference for the Chinese commercial banks to issue credit asset-backed securities.