Empirical Research On China’s SMEs Loan Securitization

The healthy development of China’s SME(Small&Medium Enterprise) is playing a very important roll in national economy growth. At present, hard-financing has becoming an obstacle to SME’s development. The effects were imperceptible, though lots of efforts have been taken. Therefore, it is urgent to grope for a new approach for financing. Securitization is one of the most important fruit appeared in the trends of worldwide financing innovation since1970s. It is different from stock and bond the direct financing way and the bank indirect financing way, Securitization provide a effectively, low cost financing way for the small and medium-sized enterprise which is difficult to earn finances in the capital market.This article first securitization of loans to the basic theory of a systematic exposition focuses on the securitization of credit assets, meaning, patterns and principles of asset securitization and credit risk. Secondly, the definition of the Development of SMEs were discussed, describes the commercial banks for SME status of the securitization of credit to SMEs to implement the necessity and feasibility analysis. Learn foreign SME loan securitization model, including the U.S. small business loan securitization case, the synthesis model in Germany and Spain in cash mode, and cash patterns of the synthetic models were compared. In the securitization of SME loans from abroad on the basis of this paper, china zhengshang bank element2008-1SME loan securitization, for example, built from the asset pool, SPVs established credit rating and increase security level and risk control, etc. securitization of SME loans of model and empirical study of the credit risk of lending to SMEs, the empirical results show that the interest rate and credit risk is proportional to the growth rate of industrial added value and default rates negatively correlated. Finally, conclusions and recommendations are part of this article.