Implementation Of Bank Credit Asset Securitization Trust

The bank credit assets securitization is an important financial innovation in the international finance field in recent three decades and develops rapidly in the abroad. Credit assets as securitization have included automobile loan, credit card loan and consumer goods loan and public cause loan etc. Its purpose is to provide liquidity to the mortgage credit market. It separates and reorganizes between the risk and value of credit assets, which makes the participators benefit from it. Assets securitization would be the trend of financial market in the future.Since the middle period in the 90's, many economists have been carrying on the research of assets securitization. But owing to the complexity of credit assets securitization, China has not found securitization market and exists fixed distance between reality and theory. As a member of the emerging market in the world, China must follow the trend of securitization. It is a milestone showing China big step toward the wave of the finance globalization. At present, the bank credit assets securitization is the exploring stage, and still no perfect operating model. The major cause lies in the special purpose vehicle (SPV). The thesis would try to research the new model-the trust model-with the help of trust to carry out the bank credit assets securitization. The thesis consists of five parts.Part one is the theory on the bank credit asset securitization. The development course of assets securitization includes two stages. The bank credit assets securitization is the second stage and is main part of asset securitization. The bank credit assets securitization in theory chiefly includes a nucleus principle (cash flow analysis theory of underlying assets) and three the basic theories (assets reorganization and risk remote and credit enhancement). It is a more efficient method for linking borrowers and investors than traditional financing through financial intermediaries. Our country has to carry on securitization no delay, and the basic conditions on securitization have been fulfilled now.Part two analyses the feasibility that makes trust put to use the implementation of credit assets securitization. Trust property is of the independence principle and could achieves effectively risk remote in the course of securitization, which is central content of trust model. There are perfect laws and regulations and financial system in theadvanced nations and many selections in SPV. But in the early stage of securitization trust model was often used because lack of laws and regulations, and Japan is an example. Trust in china after going through five important adjustments is energetic and trust companies also carry on institutional reformation according to modern corporations management requirement and market-directed economic standard. Being compared with other finance organizations, the business and functions in trust investment corporations are the richest, and the management method is the most flexible. So it possesses the incomparable superiority at the aspect of carrying out the credit assets securitization.Part three analyses operating means that make use of trust to carry on the credit assets securitization. Performing loans should been selected as asset-backed securities in the bank credit assets such as housing mortgage loan and capital construction loan. Pass through as simpler security is used in the early stage. The bank credit assets will be transformed into trust properties in the trust model. Then is asset-backed securities that through credit enhancement and due diligence in the course of securitization. Trust companies as trustee issue securities to investors. Now agency investors are suitable in the initial stage. The investors' income of trust comes from principal sum and interest of per month loan and prepaid capital, and deducts the service fee. Prepayment is a risk factor during the securitization. Due to avoid credit risk need to suppose a constant prepayment rate (CPR) and its affection to cash flow. The securitization can be divided two steps that ar...