Case Study Of Domestic Commercial Banking's Development Of Credit Assets Securitization

Asset securitization is a financial innovation product and a component of financial and capital market. It is the urgent need of vitalizing credit stock and an assistance of the transformation and development of bank industry. Developing asset securitization is an important step for commercial bank to seek to make transformation reform. Further driving the innovation and development of asset securitization with the market theory has reached a consensus in regulatory and financial industry.The future controllable risk measures of financial market regulatory to mechanism of informtion disclosure will be further improved and asset securitization business is hopeful to welcome in the golden period of development.The State Council issued 400 billion of credit asset securitization amount in 2013 and added another 500 billion of amount in May,2015 and the market accumulative value scale is near trillion; Then in terms of bank entry qualification, besides the banks which have obtained the business qualification of credit asset securitization originally, China Banking Regulatory Commission approved another 27 banks to develop the business of credit asset securitization in 2014 and the competitions of credit asset securitization business in financial market is on the verge of breaking out; People's Bank of China and China Banking Regulatory Commission reformed the credit asset securitization in 2015, further relaxed the regulatory conditions of developing bank asset securitization business, the advantages of policies for banks to develop credit asset securitization are obvious. Everything is ready for the development of the business of China's credit asset securitization and the break out of credit market is very soon.1. Main contents of the paperChapter one is the introduction, which mainly introduces the studying background and meaning, current situation and thought of the study. In China, credit asset securitization has just started. China is still facing with many problems to be solved urgently in developing credit asset securitization, for example, in the key period when the structure of bank industry is transformed, the scale of credit asset securitization is expanded constantly, issuing speed is accelerated constantly. Can commercial bank develop credit asset securitization actively starting from expanding profit channel, keeping away its own financial risks and maintaining the stability of the whole bank system? At present the existed credit asset securitization products in commercial bank are various and the market competition is fierce, then what kind of disadvantages can be avoided and what kind of advantages can be referred to? So studying the pricing mechanism of China's credit asset securitization has important theoretical significance and practical significance. The part of studying the current situation mainly clarifies the basic concept of credit asset securitization through combing domestic and foreign literature, focuses on discussing the studying results and studying methods of domestic and foreign scholars about credit asset securitization's impacts to the bank industry and the risk of credit asset securitization products so as to explore the studying importance of this paper.Chapter two first introduces the basic principle and classifications of credit asset securitization, then explains the development process and current situation of our country's credit asset securitization and concludes the development situation of our country's credit asset securitization at present and at last it leads to the main cases products which will be analyzed in this paper--- the second phase of credit assets backed security of Zhao yuan in 2015. It gives an overview of the issuing situation of this product from the trade structure of the product and internal structure of the products, product designing of credit enhancement and conducts careful analysis and comparison to credit asset securitization on this basis.Chapter three analyzes the case that China Merchants Bank issues the second phase of credit assets securitization of Zhaoyuan in 2015. Firstly, it analyzes from the motivations for China Merchants Bank to issue credit asset securitization, which include its own motivation and motivations of policies and concludes that the issue of credit asset securitization products of commercial bank can relieve the pressure of capital and mobility under the big environment that credit asset securitization is greatly developed in our country; Secondly, it assesses the disadvantages and advantages of this product carefully from all kinds of aspects such as basic assest features of this product, regional distribution features of loan, features of the borrower, loan types, features of loan period, features of the interest rate of loan, etc.; Thirdly, this paper analyzes the common points for commercial bank to issue credit asset securitization products at present from aspects such as participants, credit enhancement methods of product, risk return of sponsors, etc.; Fourthly, this paper makes horizontal and longitudinal comparisons among the second phase of credit assets securitization of Zhaoyuan in 2015, the first phase of credit assets securitization of Gongyuan in 2015 and the first phase of credit assets securitization of China Merchants Bank in 2014 and finds that no matter in the perspective of horizontal comparison or longitudinal comparison, credit asset securitization products of commercial bank all have many common points as well as some differences worthy being discussed according to their own designs.Chapter four predicts the future development trend of bank credit assets securitization on the padding of the first three chapters and on the basis of cases analysis and then puts forward three suggestions for commercial banks in our country to develop credit asset securitization.2. Main contributions of the paper1. At present credit assets securitization has developed to a breakthrough period in our country and commercial bank pushes out all kinds of credit asset securitization products one after another and the market competition is fierce. Different credit asset securitization products have all aspects of advantages worthy being referred to and more or less defects worthy reflection at the same time. Under the general trend of conforming with the development, the administrative interference color will become fading and commercial bank should improve constantly from the sponsors themselves and the product design to promote continuous development of credit asset securitization.2. Every aspect of credit asset securitization has space to be further improved from the participant to the quality of pooling assets. Many products taking the case in this paper as leading have problems to be improved such as the big differences between the credit of assets pooling and the future causes the declining of the quality of pooling assets, the credit credit enhancement method is sole, etc. As the main body of issuing, the intermediary institutions should make good relative matters about issuing and make up their own defects at the same time of accumulating experience.3. The types of basic assets of credit assets securitization needs to be further enriched, only the innovation of products can better meet the requirements of the market and attract investor's vision. Commercial bank should enlarge innovation of credit assets secuntization products under the premise of controlling its own risk to meet investors with different risk preference, perfect risk-taking mechanism and decline the financial system risk.(2) Innovation of this paperThere are the following innovations in this paper:1. In content, this paper builds a frame with the method of cases analysis, analyzes the general features and defects of China's credit assets securitization products and puts forward development suggestions combining the current development conditions of China's credit assets securitization.2. In form, this paper focuses on the hot issues of the market and be targeted to analyze the features of China's credit assets securitization business through taking analysis to the case of the second phase of credit assets securitization of Zhaoyuanin2015.3. In analysis method, this paper analyzes the classic products of our country's credit assets securitization at present carefully with data analysis and comparative analysis throughout and discusses the development trend of credit assets securitization business.(3) Disadvantages of this paperThere are the following problems exiting in the process of writing this paper:1. In obtaining of documents, it just makes study on the basis of existed public document and can't obtain more document for further study. It just makes careful analysis to the products of the second phase of credit assets securitization of Zhaoyuan in 2015 and it is simplified process to the credit asset securitization business, so it will neglect some important problems in this kind of simplified process. The conclusion got on this basis also needs further inspection of practice.2. Because China is still at the beginning of development of credit asset securitization, trade data is missing and is hard to be obtained. It can't obtain more reliable empirical conclusions through quantization and analysis to specific credit assets backed security with measurement model, which is closely connected with the development phase of market and the missing of data is the main root.