Research On The Improvement Of Risk Control Of Industrial And Commercial Bank's Non-performing Assets Securitization

Asset backed securitization is a major innovation in the world financial field in nowadays.China's commercial banks' non-performing asset backed securitization business was officially launched in 2005,with satisfactory results.But with the deterioration of the US subprime crisis in 2008,China's regulatory authorities suspended the trial in early 2009.In recent years,with China's economy entering the"new normal" and deepening of economic reform,commercial banks are generally facing the pressure of increasing of total assets and ratios of non-performing assets.By the end of 2015,the total amount of non-performing loans of commercial banks in China reached 12613 billion yuan,and the rate of non-performing loans reached 1.67%.Traditional methods of dealing with non-performing assets,such as litigation and reorganization,are inefficient.It is urgent to find a more effective way of control.Therefore,After 8 years of interruption,China restarted the pilot project of non-performing assets securitization of commercial banks at the end of 2015.As one of the six first pilot banks,Industrial and Commercial bank of China issued the first phase of Gong Yuan 2017 non-performing asset support securities to the national inter-bank bond market in June 26,2017,which was issued in a scale of 406 million yuan.In this paper,the issue of non-performing assets backed securities is taken as the research object,through collecting relevant data and issuing materials,combining with the theoretical basis and operational principle of non-performing assets securitization business,reveals the current situation of non-performing assets and securitization of commercial banks in China,and finds that ICBC is facing cash flow shortage,market value fluctuation and correlation in the development of non-performing assets securitization business.There are four kinds of risks,such as the lack of stability in macro environment and the maturity of securitization technology.In-depth analysis of the control measures taken by commercial banks for each type of risk and a series of problems in the process,put forward relevant countermeasures,such as improving the bank credit evaluation system for cash flow insufficiency risk,how to provide better guarantee for debtor's cash flow recovery,establishing and improving the performance appraisal system,and so on;in view of the risk of securities value fluctuation,it is necessary to refine the relevant strategies.Business analysis and explanation,optimizing interest rate structure,ensuring a legal environment to support the healthy development of the risk of environmental instability,standardizing its legal acts,training legal personnel,etc.In view of the immature risk of securitization technology,reasonable pricing,guaranteeing the market liquidity of non-performing assets securitization business,and adding information disclosure content to ensure that all participants are timely.Understand relevant information.In order to provide a more comprehensive idea for China's commercial banks,including ICBC,to implement the risk control of non-performing assets securitization in the future.