A Study On The Commercial Banks' Inferior Credit Assets Securitization

Asset Securitization is developed as one of the most important innovations in financial instruments during the 20th century period, with its perfectly-designed structure largely prospering the financial market. The distinctive function in optimizing the structure of bank credit loans has proved it so many advantages and prospects in international financial market that even some scholars contend that "the spectrum of Asset Securitization virtually extends to the edge of people' s imagination. Moreover, after China' s joining into WTO, it seems especially urgent and of great significance for our nation to cope with inferior credit assets now insisting in many banks. This paper attempts first to introduce how Asset Securitization processes, and then discuss how to employ appropriate approaches in credit improving according to status in China to make use of Asset Securitization more effectively and efficiently in handling with inferior assets in commercial banks.It should be yet pointed out that soil of large-scaled application of asset securitization in China is still to be cultivated further. Therefore, this paper is also designated to analyze macroeconomic circumstances needed for its application.