The Study On Securitization Of Non-performing Loans Of Commercial Banks In China

This thesis aims to examine optimal solution of non-performing loans(“NPL”) backed securitization in China. Currently, the economic depression has ever boosted the scale of NPL of China's commercial banks. Thus, this is the best timing to find a feasible solution to resolve NPL issues. Based on results of related literature and theoretic rationality, to securitize China's NPL could be the best way. However, to establish an efficient system of NPL backed securitization would require a competitive environment of rating agency, professional institutes for structuring deals, and transparent accounting disclosure allowing investors to make relevant decision. Under such hypotheses, this study analyzes the first NPL backed securitization case launched by China Construction Bank, that is, the "JianYuan 2008-1 Restructured ABS Trust.” Therefore, this study can verify advantages and disadvantages of NPL backed securitization in China accordingly. Finally, this study proposes some suggestions under which we can find how NPL backed securitization can be worked out in China practically.