Analysis Of Non-performing Asset Securitization Of Huaxia Bank

The banking industry has always been an important force for the sustained,stable,and healthy development of China's economy.It plays an irreplaceable role in the establishment of a market economy system and the process of urbanization.However,for a long time,the problem of non-performing assets has plagued China's commercial banks.Banks have traditionally used non-performing assets to manage their non-performing assets.This is inefficient and takes a long time,and huge non-performing assets have affected the development of the banking industry.Non-performing asset securitization,as an innovative financial instrument,can effectively handle non-performing assets,and has a role in revitalizing stock assets,improving bank liquidity,and mitigating capital.However,the size is minimal,especially for joint-stock commercial banks.It is undeniable that a large part of the issuance of non-performing asset securitization is constrained by national policies.In 2016,the pilot program was reopened.The pilot banks were also only several Banks,With further liberalization of policies,commercial joint-stock banks have the opportunity to use securitization methods to solve their own non-performing assets.HuaXia Bank immediately followed the policy guidance and issued the first phase of the non-performing asset-backed securities of Longxing 2017-1.HuaXia Bank has the common characteristics of general joint-stock commercial banks and has certain representative significance.In the case of severe non-equivalence in the scale of non-performing assets and non-performing asset securities,in order to promote the development of non-performing asset securitization,through the analysis of this case,it is possible to have a more comprehensive understanding of commercial bank non-performing asset securitization and summarize the issue.The unstable variables and risk points that the process pays attention to provide valuable practical experience for other commercial banks to manage non-performing assets.This paper analyzes the cases of bad assets securitization of Huaxia Bank and finds that the securitization of non-performing assets can solve some of the problems of non-performing assets,improve the financial structure of banks,and strengthen their credit capabilities,However,there are still many problems in practice.The risk of asset pool construction,the uncertainty of the macro environment,and the impact of the issuance of non-performing asset securities on the bank's own instability are all worthy of our attention.Among them,the credit of the pool assets and the risk of affiliate equity transfer.After the establishment of a trust,the presence of assets in the pool will affect the timely payment of non-performing asset securities.In order to solve the problem of risk in practice,this article conducts an in-depth analysis of the process of Longxing 2017-1,combines current financial market status and policy environment,and proposes targeted countermeasures and recommendations in order to promote the development of non-performing asset securitization.Commercial joint-stock banks provide some ideas and lessons.