Commercial Banks Non-performing Assets Securitization Accounting Studies

In recent years,affected by the macroeconomic regulation and microeconomic restructuring,the non-performing loans and non-performing loan ratio of Chinese commercial banks have been continuously rising.By the end of the third quarter of 2016,the non-performing loan ratio of commercial banks in China has reached 1.75%,bringing a great deal of risk to the operation of commercial banks.Restricted by the alarming requirements of regulatory authorities and the limited capacity of State-owned Assets Management Corporation in digesting non-performing assets,commercial banks are in urgent need of figuring out new avenues to deal with the growing non-performing assets.Asset securitization,as a financial innovation in twentieth Century,opens up a new way for commercial banks to dispose of bad assets.Accounting is a tool to record the process of economic activities and define the responsibility of economic activities.Asset securitization business can be carried out smoothly,greatly owing to the support of accounting business.From the practice of asset securitization home and abroad,how to accurately carry out the accounting measurement of asset securitization business is a controversial issue,as well as a tough nut to crack for the research experts of various nations.It is more striking since 2008 when U.S.subprime mortgage crisis triggered a global financial crisis.The development of asset securitization business in China is relatively slow,adhering to the principle of “legislation through pilot practice”.Though a series of accounting systems and policies have been established by the Ministry of Finance such as “credit asset securitization accounting rules”,“No.23 Enterprise Accounting Standards”,a set of standard templates for practical application has not yet formed.Commercial banks,the sponsor of non-performing asset securitization,precise accounting measurement of the non-performing assets securitization business has been done,in order to prevent the financial risk of amplifying non-performing asset securitization.Under this background,this paper centers around the commercial banks,aiming to explore a set of accounting-business procession templates for non-performing asset securitization,and in the practice of non-performing asset securitization accounting.The first part of this paper describes the research background,research ideas and research methods of non-performing assets securitization of commercial banks.The second part describes the basic theory of non-performing asset securitization accounting and accounting regulations.The third part outlines the process of non-performing assets securitization business accounting in Chinese commercial banks.The fourth part is about the analysis of the procession steps in non-performing assets securitization accounting business.At last,the author proposed our country commercial bank during the accounting treatment of non-performing assets securitization may involve the problem of non-performing assets securitization in our country accounting system,and puts forward some suggestions on the construction of the accounting system and standard construction of non-performing assets securitization in China.