"Hecui2016-2" Non-performing Asset Securitization Case Analysis

Asset Securitization(ABS)is an important innovation in the financial industry in the twentieth Century,rising in the housing financial market in the United States.it will issue securities to obtain financing By packing and reorganizing the assets that lack immediate liquidity.China's research in this area began in 1990 s,but it wasn't until 2005 that the pilot of banking ABS was launched.A new round of asset securitization business has been launched in 2012 since 2008.Among them,the securitization of non-performing assets is a new field.It was restarted in 2016.In the international financial market,the securitization of non-performing assets is generally considered to be one of the effective financial tools to solve the bad loans of commercial banks.In recent years,the rapid development of China's financial industr y brings not only economic growth,but also the accumulation of bad assets of commercial banks.At present,the main way for domestic commercial banks to deal with bad assets is to package and sell to the Asset Management Company,or to pay debts and legal proceedings,but there is a problem of low efficiency,long period and low sale of assets.Therefore,commercial banks expect better ways to deal with bad assets.The author believes that the tools of securitisation of non-performing assets will become an important way to solve the problem of non-performing loans in China's commercial banks.So this paper selects and extracts the second phase of the 2016 Securitization of non-performing assets as the research object.The securitization of non-performing assets is the second non-performing asset securitization products issued by China Merchants Bank after the pilot restart.It is the first small and poor ABS in China,and has a strong representation.Through the analysis of the case,it puts forward some suggestions for the healthy development of China's NPL securitization.This paper starts with case analysis,combing the related literature of non-performing assets securitization,and discusses the concept and related theories of NPL securitization.First,the paper introduce the background and the basic cases of case publishing.Secondly,the paper makes an analysis of the case design link,and finds out and extracts the second phase of NPL in 2016,which has the advantages of high quality of basic asset collocation,complete credit raising measures and reasonable pricing.Thirdly,we use AHP to analyze the risk of products and find out the risk factors.Finally,through event study,comparative analysis and other methods,we investigate the effect of the 2016-2 phase of non-performing asset securitization on China Merchants Bank.Though the bank market value is lost in a short time,in the long run,it significantly improves the management of banks.This greatly strengthens the willingness of banks to issue bad assets and support securities.On the basis of the above analysis,the advantages and problems of the second phase of the securitization of non-performing assets in 2016 are summarized.From the two levels of the government and the sponsoring organization,the policy suggestions are put forward,such as perfecting the legislation of asset securitization,cultivating the two level market,establishing the securitization inquiry system,rationally configuring the assets of the entry pool and optimizing the measures for increasing the credit.