Case Analysis Of Asset Pool Risk Management Of Non-performing Assets Securitization In China's Commercial Banks

In recent years,China has gradually transitioned to the "new economic normal" and continuously deepened the supply-side reform.China's commercial banks are generally faced with the pressure of increasing non-performing assets and rising non-performing asset ratios.The increase in non-performing assets not only adversely affects the stability of commercial banks,but also may lead to systemic risks in the banking industry.Therefore,how to effectively dispose of non-performing assets in a reasonable way has become a growing concern of commercial banks.In 2016,China restarted the pilot of non-performing asset securitization of commercial banks.This policy provides commercial banks with an important way to dispose of non-performing assets.Major commercial banks have begun to actively dispose of non-performing assets by issuing non-performing asset-backed securities to improve their capital adequacy while improving their asset structure.The non-performing asset securitization business is not only conducive to the healthy and sustainable development of commercial banks,but also greatly enhances China's ability to prevent systemic financial risks.Although commercial banks have many advantages in conducting non-performing asset securitization business,due to the high risk characteristics of non-performing assets,once they are in the process of securitization,they cannot control the various risks faced by the asset pool,which may not only result in the issuance.Failure or a repayment crisis will adversely affect the reputation and business activities of commercial banks,and even cause a chain reaction of the financial system in severe cases.The asset pool as an important underlying design for non-performing asset-backed securities is a decisive factor in the success or failure of securities issuance.From the screening of pooled assets,asset pool value assessment,liquidity guarantee measures to subsequent operational management,principal and interest repayment,asset pools face different risks in all aspects.Commercial banks need to pay close attention to the risk control of asset pools,and need to take a series of effective measures at various stages of the issuance to control these risks within a reasonable range,thus ensuring the smooth development of asset securitization business.This paper takes the second-phase non-performing asset-backed securities of Gongyuan Zhicheng in 2018(“Gongyuan Zhicheng 2018-2”)as a case.From the perspective of asset pool risk control,it defines and interprets the different risks faced by different links.The combination of qualitative and quantitative analysis,in-depth analysis of the relevant control measures taken by the “Gongyuan Zhicheng 2018-2” in the issuance process,and with all the individual housing mortgage-type non-performing loan securitization products that have been issued in the market.A comparative analysis,and then from a variety of perspectives on commercial banks in the process of doing business in the process of non-performing asset securitization proposed rationalization recommendations.The case selected in this paper is a securitization product with personal housing mortgage-type non-performing loans as the pooled assets.This case shows its unique advantages in some aspects,which can be applied not only to the same type of asset securitization business,but also to It will be further promoted to the non-performing asset securitization business with other assets as the pooled assets,which will be further improved in practice and have certain reference value for the development of non-performing asset securitization business in the future.