Research On The Improvement Of The NPA Securitization Business Management Of Huarong Asset Management Company

With the deepening of China's industrial restructuring and economic transformation and upgrading,a large number of credit default incidents have occurred in domestic enterprises,resulting in a sharp rise in the balance of non-performing loans and non-performing loan rate of domestic financial institutions.By the end of 2018,the balance of non-performing loans and concerned loans of commercial banks in China was 4.76 trillion yuan,an increase of about 3%over the same period of last year.Financial institutions are facing the operating pressure brought by the long-term inefficient operation of the stock of risky assets.Therefore,it is of great significance for financial enterprises to carry out research on innovative business of non-performing assets.As the largest financial non-performing assets management institution in China,Huarong Company's traditional non-performing assets management methods can not meet the growing demand for disposal of non-performing assets and its sustainable operation ability is declining because of the large quantity and poor quality of non-performing assets and the increasing supply of non-performing assets.Therefore,Huarong Company urgently needs to introduce a new non-performing assets business management mode which can manage non-performing assets in batches and efficiently.Because asset securitization has the characteristics of batch disposal of inefficient assets and improvement of financial situation of financial institutions,based on my years of experience in the field of non-performing assets,I think that Huarong Company can play a great role in improving operating efficiency and resolving stock inefficient assets by managing non-performing assets through non-performing assets securitization.However,due to the immaturity of the domestic financial market,there are still some problems such as unreasonable pricing and inadequate credit enhancement measures in the process of developing non-performing assets securitization business in both commercial banks and Huarong companies.In this context,this paper combines the development trend of domestic non-performing assets market,takes the non-performing assets securitization products developed by domestic similar enterprises as reference,combines the mainstream ideas of developing non-performing assets securitization business at home and abroad at this stage and Huarong s operating status,puts forward the improvement ideas of Huarong's non-performing assets securitization business management,and accordingly puts forward corresponding suggestions.Safeguard measures and related suggestions.In order to provide some references and ideas for China's finanial asset management companies,especially Huarong Corporation,to use non-performing assets securitization to speed up the resolution of non-performing assets.