Research On Securitization Of Non-Performing Assets Based On Project Financing

Banking,as the important carrier in the economic activity,take an important part in our national economy.Especially for state-owned bank,which as the main channels for financial control,provide financial support to both macroeconomic control and industrial restructuring and upgrading.The uprising or downfalling of banking can directly affect our national economy.However,due to the macroeconomic environment and institutional mechanisms,some projects has been eliminated by the market before they pay off the debts.Because of the regulation of bank itself and enterprise operation issue,banking has precipitated a great deal of non-performing loan. These non-performing assets hindered the development of banks.It leads to banks difficult to exercise normal functions,and thus threaten the security of entire financial system.It may further affect the reform and development of China’s economic system.Asset securitization is an important innovation in the financial field in recent decades.It has a significant advantage in improving the efficiency of financing and strengthening risk management.Especially,it can deal with the non-performing assets out of balance sheet;so as to improve the profitability and liquidity of assets.So it is regarded as an effective way to solve the non-performing loan.Some countries already succeed in it.In this paper,by analyzing the reason and traditional solution of non performing loan based on project financing,we can realize the disadvantage of traditional methods.Through the comparison of foreign asset securitization of non-performing assets,we can get the feasibility analysis of ours.Further more,we can research the operation model of asset securitization for non-performing loan based on project financing.Through the research,we can provide a new method to solve the non-performing loan in our country.