Application On Non-performing Assets Securitization

Banks have made much non-performing assets as the economic goes down and excess production capacity leads to higher bad debt rate.It is a pressing matter of the moment to deal with non-performing assets,which on one hand can secure that the bank industry will be operating sustainable and stable,on the other hand secure that the stable of financial market.ABS is a new way for commercial bank to deal with non-performing assets.This paper analyzes the non-performing assets securitization of Bank of China,and finds that non-performing asset securitization can deal with a large number of non-performing assets for Chinese banks,improve the efficiency of disposal,and reduce the risk of banks.The core of asset securitization is a stable cash flow,selection of basic assets directly affect the stability of cash flow,based on the established assets after the use of measures to increase trust to further ensure a stable cash flow.Therefore this paper focuses on the analysis of two aspects of the use of basic assets and measures to increase trust concentration of 16Zhongyu1,16Zhongyu1 has been found through the single issue of basic assets concentrated using high and measures to increase trust.In order to solve these problems,this paper creatively puts forward the solving methods.Starting from the attribute based assets of non-performing assets securitization itself to non-performing assets cash flow recovery rate as the division standard,under the premise of risk control,the maximum amount of the disposal of non-performing assets.For single measures to increase trust this problem,this paper proposes to increase the external credit enhancement measures,the government should establish the leading security agencies,financial institutions should develop new products to meet the development of non-performing asset securitization business.