Research Of Securitization Business Of The Bank Factoring Assets

Firstly, this paper analyzed bank factoring business, studied the current status anddeficiencies of factoring business, then analyzed the asset securitization business,discussed the ongoing asset securitization business, and analyzed the resistance andsolutions to the ongoing asset securitization business.Based on the research above, this paper discussed the model to securitize bankfactoring assets, and architected two kinds of processes of factoring assetssecuritization from the aspect of domestic and foreign. In the domestic part, thefinancial leasing companies are borrowers, mid-long term receivable rentals isfactoring assets, receivable rental insurance of the insurance companies is a means ofenhancing trust, to start securitization business. While in foreign part, import andexport enterprises or labor export enterprises are borrowers, receivables tradingcapital is factoring assets, export credit insurance of the insurance companies a meansof enhancing trust, to start securitization business. This paper examines the processesof the above models, and analyzed the risks and benefits. In conclusion, thesecuritization of bank factoring assets, in one hand, is an effective solution for bank’srequirement of cash supplements in the situation of a low stock market,,in the otherhand, securitization of bank factoring assets will enhance liquidity of bank assets andrelease credit risk of the banks, finally, as securitization of bank factoring assets isbased on receivable rentals or receivable trading capitals of higher quality, with trustenhancing from the insurance agencies, therefore it has a lower risk, and it canprovide investors comparative better investment opportunities with lower risk.Finally, this paper introduces a case and analyzed the case, as well as the gap betweenthe case and real factoring asset securitization business, and also proposed solutions.