A Case Study On The Implementation Of Credit Card Non-performing Asset Securitization In Bank Of Communications

Commercial banks play an important role in the financial system.The operation condition of large state-owned commercial banks is directly related to the safety degree of Chinese residents’ savings and the stability of economic development,which has great significance to the national economy.Under the background that macroeconomic in our country is facing the greater downward pressure,risk control becomes one of the important objectives of the management of large state-owned commercial banks,and the disposal of non-performing loans is an important link for commercial banks to control it.In particular,for the disposal of credit card non-performing assets,due to the low efficiency of the traditional means of collection and write-off,more and more commercial banks began to choose the way of credit card non-performing assets securitization as a supplementary means to effectively solve the problem of non-performing assets disposal.This paper chooses the issue of the first phase of non-performing asset-backed securities issued by Bank of Communications Co.,Ltd.in 2021 as the research object,and comprehensively uses the literature research method and case study method to study the implementation of the project and its related impact.Firstly,the main text determines the connotation of the key concepts in this paper by searching for the relevant literature and research results at home and abroad,and introduces the basic theories on which the implementation of asset securitization projects depends.On the specific case analysis,this paper,the basic background of bank of communications,and its release in 2021 the first phase of non-performing asset backed securities bonds,elaborates the basic information,and the selection on the basis of the non-performing asset securitization project assets and pricing,trading structure design and the credit enhancement design key points in the design of three projects for specific analysis,The characteristics of the design of non-performing asset-backed securities are summarized.Combined with the results of securities issuance,this paper holds that the advantages of the securitization design of credit card non-performing assets of Bank of Communications include low concentration of underlying assets,scientific method of asset pool evaluation and pricing,high degree of credit guarantee,but at the same time,there are also problems such as low quality of underlying assets and insufficient independence of transaction participants.In general,this paper believes that the practice of credit card nonperforming asset-backed securities of Bank of Communications is successful,and provides valuable experience for other commercial banks to implement the same type of asset securitization projects.Based on the study of the first phase of non-performing asset-backed securities issued by Bank of Communications in 2021,this paper suggests that the future non-performing asset securitization of credit card loans of commercial banks should focus on optimizing the selection of underlying assets,optimizing the forecast model of cash flow recovery and introducing independent loan servicers to carry out the optimization design.