Research On Risk Management Of Non-performing Asset Securitization In Commercial Banks

An important indicator to measure whether a bank is doing well is the quality of bank assets.Once the quality of assets is too poor,it means that many loans cannot be recovered.Banks act as the operating institutions for absorbing and lending,the liquidity of assets determines whether they can develop healthily and steadily.For a long time,banking financial institutions around the world are looking for a way to solve non-performing assets at low cost and efficiency.After years of practice and exploration,countries have generally found asset securitization,especially for the securitization of non-performing assets,which can solve the problem of non-performing assets with relatively low cost.As a developing country,China's financial industry is still in the primary stage of development.Both theoretical and practical experience is relatively scarce.The development of this new business requires extensive research and practice by scholars,financiers and others.However,no matter how the bank disposes of the bank's non-performing assets,the business itself will bring more or less risks,which is also the focus of the business in research and promotion.This paper mainly focuses on the development of non-performing asset securitization business of commercial banks in China and various risk indicators that may occur during the period.The purpose is to promote the development of non-performing asset securitization business in China,and thus further improve the development level of China's financial industry.The first introduction of non-performing asset securitization in China was in 2005,but due to the impact of the global financial crisis,the business was urgently suspended by the regulatory authorities after only three years of operation.In the following years,due to the slowdown in the national economic growth,the problem of non-performing assets of commercial banks became more and more serious.After eight years,the supervisory authorities had to restart the non-performing asset securitization business,and the State Council approved six commercial banks to conduct the non-performing asset securitization business within 50 billion.In 2017,another 12 commercial banks approved the issuance of the product.In the long run,non-performing asset securitization plays a key role in improving the liquidity of commercial bank assets,improving bank balance sheets,and reducing credit risk.However,due to the complexity of the non-performing asset securitization business,the process involves financial,taxation,legal,securities and other fields.The risk issues that arise during the period need to be analyzed and studied.Aiming at the current situation of non-performing asset securitization business of commercial banks in China,this paper starts with the basic theory and combines the business process of non-performing asset securitization to expound the credit,technology and environment risks that are most likely to occur in the business process,and uses the analytic hierarchy process.The above risk indicators are classified,and the judgment matrix model is constructed.The risk indicators are ranked according to the ratio of the weights,so that the credit risk ratio is the largest,which is the main risk in the non-performing asset securitization.This paper takes the “Jianxin 2016-1” non-performing asset securitization product issued by China Construction Bank in 2016 as the research object,and through empirical research,calculates the default probability of the product and uses it as a measure of credit risk.At the end of the article,the author puts forward some constructive policy recommendations based on the research conclusions.