Analysis Of Non-performing Assets Securitization Risk Of Commercial Banks In China

Asset securitization is one of the most important innovations in recent decades. It can turn credit assets off the balance sheet and turn banks’ assets of illiquidity into bonds that can be sold and distributed in the financial market in order to financing by clever design. It also improves the liquidity and profitability of bank assets. Because of the influence of the system and other factors, the commercial bank has accumulated a lot of bad assets. It not only reduces the profitability of the banks,but also easy to cause huge financial risks. In view of this, America began to use the asset securitization to solve the problems of a large number of non-performing assets its banking system in the1970s.The European countries and Japan also have the practice of non-performing assets securitization. A large number of successful international experiences prove that non-performing assets securitization can really solve the effective means of non-performing assets of commercial Banks.However, everything has two sides. Asset securitization is like a double-edged sword, it brings some benefit to the financial market, however it also accompanied by a series of risks. The outburst of sub prime crisis serves as a wake-up call to China’s commercial bank credit asset securitization. Therefore, identifying the risk accurately and performing effective management is the key to develop asset securitization.This article is to review the domestic and foreign scholars on the basis of related research and research results through the literature material method. And closely combine the related theory of non-performing bank asset securitization and the actual situation of China Banking. Use specific case analysis to clarify the operation of non-performing bank asset securitization process, and the risk in the process that we should pay attention to. At the same time using the comparative analysis to the practice of bad asset securitization in our country’s commercial bank compared with the successful experience of foreign Banks to draw on experience for reference. This paper also uses the case analysis method to analysis the concrete steps of securitization of non-performing assets of commercial Banks, the main problems and risk points combined with the specific case of a commercial bank. Finally, some targeted countermeasures and suggestions are given. In general, the innovation points of this paper is mainly in using the method of comparison and analysis the current situation of the securitization of non-performing assets in combination with the practical situation of China. This paper is embodied in specific to commercial Banks non-performing assets securitization, especially involves the risk control of information is difficult to obtain, and the lack of technical analysis was carried out on the risk is also a problem.