A Study On Non-performing Asset Securitization Of Commercial Banks In China

With the downturn of China's economy and the continuously increasing amount of non-performing loans,the issue of non-performing loans has aroused great attention of the society.At the beginning of 2016,China restarted the non-performing assets securitization of commercial banks and selected six commercial banks as experimental units,planning to deal with the problem of non-performing loans.Under this background,it is of practical significance to study the problem of securitization of non-performing assets of commercial banks in China.First of all,through the domestic and foreign scholars' study on the disposal of non-performing assets,the paper theoretically proved that the feasibility of non-performing assets securitization and its significance in the process of dealing with non-performing assets,and according to the relevant research,summarized the transaction structure,transaction main body,credit enhancement methods of non-performing assets securitization.Secondly,the paper studies the current securitization status of non-performing assets,credit assets and non-performing credit assets,and expounds the necessities of non-performing assets securitization from the perspective of financial system stability,financial market efficiency and non-performing assets management.Then it demonstrated the feasibility of non-performing assets securitization from the aspects of policy,market and internal motivation,analyzing the obstacles of non-performing asset securitization.This paper chose four projects of the first batch of non-performing assets securitization in 2016 as case study objects to analyze China's non-performing asset securitization from the aspects of underlying asset pool,cash flow calculation,transaction structure,issuing subject and credit enhancement method,to study the ways of non-performing assets securitization under China's current situation and come out with the conclusion that China need take diversified measures to promoting non-performing assets securitization,including improving the construction of underlying assets pool and cash flow calculation ways,allowing multiply issuing subjects,developing diversified credit enhancement ways,and nurturing professional investors and service institution.Finally,the paper put forward relevant policy suggestions from the perspectives of legal system,regulation system,tax system and accounting system,and prospects the future of China's non-performing assets securitization.