Research On The Securitization Of Credit Asset In Agricultural Bank Of China

Securitization of credit assets refers to the process of converting the credit assets with lower liquidity to generate predictable stable cash flows into securitized products that can be circulated in the capital market through structural reorganization.As a new type of financial instrument,securitization of credit assets has been developed in the United States since the 1960 s.The development of credit assets securitization has been mature in foreign countries,but it has started late in China.In April 2005,China began to formally enter the pilot phase.With the outbreak of the financial crisis in 2008,the pilot work on the securitization of credit assets was suspended,and after four years of stagnation,it was announced to restart in 2012.Securitization of credit assets not only can improve the liquidity of bank assets,solve the capital occupation problem,but also improve the capital adequacy ratio,reduce the non-performing loan ratio and improve the bank's asset quality.However,the advantages of securitization of credit assets have not yet fully played a role in the development of commercial banks in China,so it is of great practical significance and academic value to the research of credit asset securitization.Taking the analysis the product of Agricultural Bank of China "Agricultural Bank II" as an example,the paper studies the securitization of credit asset of state-owned commercial banks in China.Methods such as case analysis and comparative analysis are helpful to us in this paper.Firstly,by describing the background and significance of this study briefly,the paper explaining the research status at home and abroad,which shows some innovation points and problems.Secondly,the paper describe the case background,basic information of "Agricultural Bank II" and operation process.Thirdly,it analyzes the advantages and disadvantages of the "Agricultural Bank II" products and the specific operation in the process of securities issuance.it also expound the impact of the issuance of the "Agricultural Bank II" to Agricultural Bank of China from the perspective of business performance and internal management,which is important to the paper.Finally,according to the results of the analysis,the paper puts forward the development proposals of the Agricultural Bank of China in carrying out the securitization business of credit assets,and summarizes the main contents of this paper,and also provides reference for the development of credit assets securitization business of other state-owned commercial banks.Through the research of this paper,it is found that the basic assets standard of "Agricultural Bank II" is high,the selection is appropriate,the product structure design is reasonable,the participants of the "Agricultural Bank II" product distribution are experienced,the business process is closely connected,and each department cooperated closely.And the issuance of "Agricultural Bank II" did play a role in both operational performance and internal management,which not only increased the income of intermediate business,effectively relieved the capital adequacy pressure,but also enhanced theimage of Agricultural Bank of Chinain the banking market.However,there are risks such as deterioration in the quality of basic assets,early repayment of borrowers,changes in interest rates,and lack of liquidity.This paper also puts forward the corresponding improvement suggestions according to the found problems,and thinks that the Agricultural Bank of China can adjust the state of the asset pool from the static pool to the dynamic pool so that the basic assets can be adjusted to accommodate specific needs.In terms of credit enhancement,it is suggested that the Agricultural Bank of China may consider increasing the recognition of investors by controlling the payment of the cost and taking the combination of internal credit enhancement and external credit enhancement.In the analysis of the expected loss of "Agricultural Bank II" products,we should fully consider the loan interest rate of basic assets and the spreads of various types of senior security,interest rate adjustment time mismatch,the borrower at the same time breach of contract and other factors.In addition,it is recommended that the Agricultural Bank of China in the credit asset securitization business development,we should pay attention to the introduction and cultivation of professionals,and gradually carry out the securitization of securitization business,the PPP project loans to take into account the credit asset securitization business carried out.The case analysis of the credit asset securitization business of the Agricultural Bank of China has actually provided reference for the development of the credit asset securitization business of other commercial banks.Other banks can fully learn from the experience of the Agricultural Bank of China and carry out suitable credit asset securitization business according to the actual situation.