Case Analysis Of Non-performing Assets Securitization In Banks Of Small And Micro Enterprises

As commercial banks in China make an active response to national policy and strengthen the support of small and micro enterprises,which makes the loan summation of these enterprises show an increasing tendency.At present,China's economy is in ”new normal”.With whole economic descending,economic slowing down and economic structural adjusting,hypostatic economy gets big impact,especially making small and micro enterprises face management and market risk.The loan quality of small and micro enterprises is reducing and non-performing loan risk of banks is increasingly exposed.As an effective method to revitalize the non-performing assets of banks,non-performing assets securitization is re-adopted.Extract Phase Two,issued by China Merchants Bank in 2016,is the first non-performing assets securitization project that takes non-performing assets of small and micro enterprises as capital pool.Therefore,researching on Extract Phase Two is of great value in issuing non-performing assets securitization in aspects as capital pool,credit enhancement and risk prevention.This thesis focus on Extract Phase Two,the non-performing assets securitization project issued by CMB.First,the background,necessity and feasibility of Extract Phase Two are analyzed.Then,after a brief introduction of participant,transaction process and sale station,this paper emphatically analyses the capital pool,credit enhancement and risk prevention of non-performing asset-backed securities.By making rational use of internal and external credit enhancement,Extract Phase Two provides effective credit support to the priority.In spite of the advantages of good dispersion scale,strong cashability,the setting up of excess recycling incentive system and perfect offset processing terms,there still exists shortcomings of industry and area concentration of pooling funds borrowers and information asymmetry.At last,based on the analysis of the advantages and disadvantages of Extract Phase Two non-performing asset-backed securities,this thesis summarizes the revelation in capital pool,credit enhancement and risk prevention for non-performing assets securitization projects issued by commercial banks.In capital pool,dispersion principle should be brought into full play.As for credit enhancement,commercial banks should make integrated use of all kinds of credit enhancement.In the matter of risk prevention,the emphasis Information disclosure of non-performing assets securitization,cultivation of subprime securities investment market and the set of credit collection system for small and micro enterprises are effective measures.