A Case Analysis On Credit Card Non-performing Asset-backed Securities

With the gradual liberalization of asset-backed securities in China,the securitization of non-performing assets has become one of the feasible ways to activate the credit card bad loans.On May 26,2016,“He Cui 2016 the first phase of non-performing asset-backed securities” as the world's first single credit card asset-backed securities products in the inter-bank bond market successfully issued,opened the China retail securitization of non-performing assets.Based on the systematic study of the necessity and feasibility of credit card securitization in commercial banks of China,this article analyzed the transaction structure,revenue,function and defects of “He Cui 2016 the first phase of non-performing asset-backed securities”,pointed out that the promotion of credit card securitization of non-performing assets requires not only from the macro level to strengthen the construction of relevant laws and regulations,to reduce the limitation of issuers and investors,at the same time from the micro level to achieve the separation of the loan servicer and sponsors,and establish a set of norms of asset valuation and rating standard.In addition,a complete set of process design is needed in order to achieve the smooth development of asset securitization business.This article is divided into five chapters,and the first chapter is the introduction.The second chapter discusses the necessity and feasibility of credit card Securitization,and points out that credit card securitization is feasible.The third and the fourth chapter analyze the case deeply,and make the conclusion that it has the functions of innovating credit card non-performing assets disposal channels,creating the retail non-performing assets securitization asset valuation and rating methods,making a full range of retail banking asset securitization brand effect.But there remains four main defects,such as the lack of business development,the structure of investors is too simple,the lack of a unified standard for the valuation of asset pool and the lack of a unified standard for securities rating,and the lack of separation between the loan service institution and the originator.In order to promote the further development of our country's credit card banking non-performing asset-backedsecurities business,the fifth chapter puts forward four suggestions: strengthen the construction of laws and regulations,reduce the restrictions on the issue of the main issuers and the main investments,establish a set of norms of asset valuation standard and achieve the separation of the loan servicer and sponsors.Following,the article analyzes the feasibility of credit card non-performing loan asset-backed securities from three aspects: policy support,market demand,and the advantages of basic asset pool and gives the promotion plan.