A Study On The Risk Of Securitization Of Consumer Credit Assets In China

In 2017,consumer credit was in strong growth.With the release of various policies,the personal consumer credit market is expanding continuously and credit asset securitization also ushered in a new round of development opportunities.However,it is also a year for China to increase supervision at the current stage.The government issued policies to control “cash loans” strictly and to supervise non-standardized securities products strictly.In this situation,analyzing the risk of personal consumer credit asset securitization is having a practical significance for enriching the types of securitized market varieties and promoting the healthy development of the securitization market.The originators of consumer credit asset-backed securitization are generally traditional banks,consumer finance companies,and internet finance companies.This dissertation selects the personal consumer credit asset securitization product initiated by consumer finance companies-Gitzo Financial's first consumer credit asset-backed securities 2017(Jieying 2017-1)as a case to conduct in-depth risk research and analysis from the basic asset-related risks,asset-backed securities-related risks,the risk management and related risks of the special plan management.The result shows that the design of securitization structure is becoming more and more complete.The risk would be relatively low because each participating organization fulfills its duty and pays attention to the market policy.However,the key are still the default of basic assets and the risk of early payment.When facing these risks,it is necessary to combine the strengths of all parties which included regulators,participating organizations and investors to defend against the risk and prevent the risk.In addition,regulators need to work hard to build a comprehensive credit system,create a good investment environment,and promote healthy financial market development.Institutions which related to securitisation should fulfill their duties,strengthen risk control capabilities and innovative product awareness;investors also need to improve their own awareness of risk identification,and make investment in the scope of risk tolerance,so the risk and income match.