Research On Asset Securitization Model Of Rural Banks In Jiangsu

As a new type of rural financial institution,rural banks have less capital and limited source of deposits.The development of microfinance makes their existing assets have less fluxility.In order to serve enterprises and individuals in rural areas better,rural banks can reinvigorate existing assets through asset securitization.Under the current background of China Banking Regulatory Commission encouraging rural banks and other institutions to actively carry out the housing credit,consumer credit asset securitization business,this article refers to domestic and foreign asset securitization practice,puts forward that the Jiangsu Province rural banks could make up for the lack of existing financing mode through asset securitization.Based on the SWOT analysis of the internal and external environment of asset securitization of rural banks in Jiangsu Province,there are many advantages in financing costs,financing threshold,information disclosure and financial flexibility.However,compared with the traditional asset securitization project,rural banks has maturity mismatch in assets and higher risk in credit and operating.According to the above characteristics,this paper builds a suitable asset securitization model for rural banks in Jiangsu province.In the construction of assets pool,basic assets need to be chosen strictly according to the amount of credit assets,duration,guarantee methods,risk control and other aspects,to ensure the quality of initial credit assets.In the design of transaction structure,a recycling structure with one set and cycle purchase is adopted to form the cash flow during the whole coverage plan,and the time mismatch is solved.Credit enhancement mainly uses the internal form of credit enhancement to reduce financing costs.JF rural bank has been selected as the sample of asset securitization model application,Credit assets at the end of 2016 are used as the underlying assets of the proposed securitization.This article formulates specific standards into the pool,the transaction structure of circulation purchase,through the secondary priority arrangements,the original rights dynamic isolation,excessive coverage and other ways to improve credit rating.Then,the cash flow of the JF asset plan is analyzed in detail,under the condition of different defaults of the underlying assets,the return of priority and secondary product investors is considered.The results show that in the case of 2% default,the secondary assets can still recover the principal and get 8.45% yield.This shows that asset securitization can bring considerable benefits to investors and activation of rural bank credit assets at the same time.Through the asset securitization,the financing efficiency of rural banks can be improved.It also can expand the scale of financing,enhance profitability,promote rural economic development and eventually reduce the gap between urban and rural residents.