Case Study On Credit Asset Securitization Of Shanghai Pudong Development Bank

With the reformation of marketization of interest rate,the competition among commercial banks is becoming more and more fierce.The traditional profit model can no longer meet the needs of commercial banks.The state strengthens the supervision of the commercial banks,which makes the financing cost and the financing difficulty of the commercial banks increase.All kinds of mismatches of deposits and loans are also emerging,which greatly increases the risk of commercial banks.Credit asset securitization is an important financial innovation activity of commercial banks which can activate the stock assets,solve the problems such as the mismatch of bank deposits and loans,and reduce the risks of commercial banks.In China,it was not until 2005 that China began to make experiments.After the outbreak of financial crisis in 2008,China suspended the securitization of credit assets.It was not until 2012 that the we began to restart this task.After the restart,in addition to the issuance of state-owned banks,major joint-stock commercial banks have also joined the task of credit asset securitization.The credit asset securitization market began to boom.Due to the role of credit asset securitization in activating assets and reducing risks,commercial banks have launched this business,especially non-state-owned commercial banks are pouring in.Compared with the non-state-owned banks,the large-scale state-owned commercial banks have less enthusiasm to carry out credit asset securitization than other banks.Meanwhile,the pressure of state-owned banks on traditional financing channels and incomes is not as great as that of other commercial banks.Shanghai Pudong Development Bank,as a joint-stock commercial bank and,is one of the first domestic banks to study the securitization of credit assets.It has rich practical experience in both issuing scale and issuing mechanism,which can provide good reference for other non-state-owned banks to carry out credit asset securitization.Based on this background,this paper takes asset restructuring,risk isolation and credit enhancement as the theoretical basis,and uses the methods of literature induction,case analysis and empirical analysis to discuss the issue of "Puxin 2017-1" by Shanghai Pudong Development Bank in 2017.This paper discusses the internal and external motivation,operation performance and risk of issuing credit asset securitization of Shanghai Pudong Development Bank.The conclusion shows that improving the quality of assets,activating the stock assets and increasing the source of income are the internal causes of SPDB's credit asset securitization.The external motivation is the support of national policy and rich practical experience.Shanghai Pudong Development Bank can improve shareholders' wealth in the short term and increase its popularity,profitability and security in the long term after carrying out credit asset securitization business.The risk of borrower's prepayment,excessive concentration of asset pool and insufficient liquidity will seriously affect the cash flow balance of asset pool and bring credit risk to SPDB.Reasonable allocation of asset pool,improvement of pricing mechanism,adoption of rating system of different institutions and improvement of legal mechanism of product issuance can help SPDB reduce the risks in the process of issuing asset securitization products.The practical experience of SPDB can also provide reference for other commercial banks.