Research On The Securitization Of Non-performing Assets Of Commercial Banks In China

Along with the continued economic downturn in China after the financial crisis in 2008,Commercial Banks are facing enormous challenges and stress.The asset quality of commercial Banks in China has been falling constantly especially since2012,while the non-performing loan ratio keeps rising,which rose from 0.95% in2012 to 1.74 % in 2017.A great deal of bad debts restricts the development of Commercial Banks seriously,and also poses a threat to the security and stability of our financial system.The Non-Performing Asset Securitization is a kind of financial innovative tool which developed rapidly in recent years.It provides a new marketing operation for commercial Banks to resolve non-performing assets.The NPAS ensures to reduece the threat of commercial Banks,improve the revenue of off-balanced sheet,control the regeneration of non-performing assets and capital adequacy ratio of commercial Banks.It improves the management and development of commercial Banks.At the same time,the non-performing asset securitization can also promote the perfection and healthy development of China's capital market actively,and enrich the product category of the securities market.However,since the Non-Performing Asset Securitization blends many financial engineering technology and derivative securities,the trade structure and methods are relatively complex,there will be a lot of problems and risks in the process of implementing.Meanwhile,the business of non-performing loans securitization of commercial Banks begins rather later in China,which restarted in 2016,the experiences are relatively insufficient,therefore the research on the non-performing asset securitization of commercial Banks is of great significance to accelerate the healthy development of the non-performing asset securitization business and to resolve the business risks of commercial Banks.This article is based on the basic theory of non-performing assets securitization,which mainly analyses the current situation of non-performing assets of commercial banks in China in depth,and the existing problems in the process of carrying out the Non-Performing Asset Securitization,and also studied typical cases domestic and overseas to draw lessons worthy of reference.Finally,aiming at the existing problems,this paper is based on the domestic and foreign advanced experiences and proposes some pertinent recommendation to push the development of commercial Banks.