A Case Study On Commercial Bank's Green Credit Asset Securitization

The green sustainable development of the economy is inseparable from the strong support of finance.Green finance can guide social capital to the green industry and is an important direction for the development of financial institutions.As the most important financial intermediary in the financial system,the Bank actively undertakes the social responsibility of green development and vigorously develops the green credit business.As of June 2017,The balance of green credit of 21 banks reached 8.22 trillion yuan.Although the green credit project has high environmental benefits,the disadvantages are also obvious.Long-term recovery period and too much money occupied projects as well as large scale balance of green credit contribute to the difficulties to the bank which makes it hard to turnover of the capital.Asset securitization can reduce corporate financing costs and enhance asset liquidity,NONGYING 2017 Green Credit ABS product is the first inter-bank green certification product,which eases the asset liquidity faced by the Agricultural Bank under the premise of maintaining the green property of the product.The pressure has increased the capital adequacy ratio.By studying the features and deficiencies of the product,it can provide a reference for commercial banks to issue green credit asset securitization products.This thesis analyzes the green credit asset securitization of commercial banks by literature review and case analysis.Firstly,it introduces the relevant principles and operational processes of green credit asset securitization,and analyzes the development of green credit asset securities from the perspective of government policies and industry characteristics,Then introduced the background and basic situation of the product release,finally analyzed the product design of NONGYING 2017 Green Credit ABS,and evaluated the product distribution effect.From the analysis,the products in this issue have the following characteristics: First,the basic assets of the current products are lucid waters and lush mountains Credit Assets,distributed among different industries in different cities,effectively decentralizing the concentration of industries or regions while ensuring the quality of basic assets.Second,rationally choose the method of credit enhancement,and adopt the method of internal credit enhancement to reduce the cost of external credit enhancement.Third,through the green certification of third-party certification bodies,the market has increased the recognition of the green attributes of products.Fourth,the economic and market effects of the products have responded well,which has alleviated the liquidity pressure of the Agricultural Bank to a certain extent,and at the same time assumed the social responsibility of green development.Because the scale of the issuance of products in this period is small,there are differences in green evaluation certifications at home and abroad,and the products still have the disadvantages of less improvement in liquidity and non-uniformity in green evaluation and certification standards.On the basis of the summary of the case,the thesis puts forward suggestions for optimizing the green credit asset securitization products from the perspective of enterprises and government.Enterprises should reasonably choose the method of credit increase to reduce the financing cost,and green certification of products to ensure green attributes;the government should establish a shelf issue The system improves the convenience of product issuance,improves the laws and regulations on green credit asset securitization,and establishes a unified green certification system.