Securitization Of China’s Commercial Banks Non-performing Assets

Since the reform and opening up, China’s rapid economic growth. Bring some long-term problems of rapid growth. The urgent need for economic structure adjustment. After the party’s 18, China’s macro-economic growth rate began to decline, Commercial banks experienced a rapid growth rate, poor rate after a sustained period of low level. Since 2014,non-performing rate continues to rise. This year’s data show that commercial banks NPL ratio has been close to the warning line. How to deal with non-performing assets of commercial banks to reduce the credit risk has become an urgent need.China’s commercial banks dispose of bad assets, the government has been relying on the traditional "blood transfusion", Means to take bad debt write-offs, debt restructuring or peeled. This is a product of the planned economy in China before, with the formation of China’s market economic system, it is necessary to seek new ways to deal with non-performing assets. Debt is effective practices deal with bad assets, China has begun to take this approach. Commercial banks in advanced economies tend to take on international asset securitization means of dealing with bad assets, and relatively mature, which is worth to learn Chinese Commercial Banks. During the two sessions in 2016, the People’s Bank of China held a press conference, Xiaochuan Zhou proposed commercial banks non-performing assets Securitization. In this context, this paper presents the disposition of non-performing assets of commercial banks. Article reviews the NPAS research achievements at home and abroad, Introduced NPAS knowledge; Analysis of the developed economies as well as some experience of NPAS NPAS on the feasibility; This article also NPAS design a viable option; How pricing is the key to NPAS; In this paper,qualitative means of NPAS pricing study; Single factor model to predict the recovery of non-performing asset pool; Using regression methods spread bad asset-backed bonds; And pointed out that the main factors affecting spreads; Finally, it points out risk factors need to be considered non-performing asset securitization and the legal system faces obstacles.China’s commercial banks late start, lack of sufficient experience and support; With the establishment of China’s market economic system, the gradual improvement of China’s financial market; In particular the interest rate market is completed; Commercial banks face great risks and challenges, How to properly dispose of non-performing assets ofcommercial banks is a priority. This article is to provide solutions to resolve non-performing assets of commercial banks.