A Case Study On Asset Securitization Financing Of Microfinance Companies

Microfinance companies provide financial support for the development of small and medium-sized enterprises,but with the expansion of microcredit companies' business scale and growing loan assets,microfinance companies have increased their demand for loanable funds.In view of this situation,this article firstly introduces and analyzes the historical evolution and development status of China's microfinance companies,and concludes that at present,China's microfinance companies have the following characteristics:The overall development of microfinance companies in China is rapid,and recent The year began to enter the adjustment period;the development of small loan companies in various parts of the country was uneven,with the development level of small loan companies in Chongqing,Jiangsu,and Guangdong Province leading,while the development of small loan companies in Qinghai,Hainan Province,and Tibet Autonomous Region was low;Loan companies are generally faced with shortage of talent;China's small loan companies have a single business model and China's small loan companies are facing serious financing difficulties.Through the introduction and analysis of the history of asset securitization and the current status of development,it is concluded that asset-backed securities are currently developing rapidly in China,and that all types of asset-backed securities are unbalanced in China,with the largest number of asset-backed securities issued in China.However,the amount of issuance of credit asset securitization products was the largest and the average single-issue scale of credit asset securitization products was the largest;the annual default rate of asset securitization products was generally low,and the annual default rate exceeded0.50%.There were only two products,credit asset securities.The default rate of individual consumer loans in the process of conversion is relatively high;the early repayment rate of asset securitization products varies greatly,among which the early repayment rate of equity pledged repurchased asset securitization products is the highest;the average duration of asset-backed securities is proportional to the duration of the underlying assets.relationship.In view of the financing difficulties of small loan companies,this paper proposes the use of asset securitization financing methods.Asset securitization has significant advantages in expanding microfinance companies' financing channels,improving liquidity,more flexible trading structure setup,optimizing financial statements,reducing corporate financing costs,improving financing efficiency,and realizing risk transfer.However,at present,China's policy formulation for small-loan companies is still not complete,and small-loan companies have a relatively large operating risk.Asset securitization is still at an exploratory stage in China,and multiple unfavorable factors are superimposed on each other,which is not conducive to the securitization of micro-loan assets in China.development of.Subsequently,this article quoted the first domestic microfinance company that issued asset-backed securities-Chongqing Ants Chengcheng Small Loan Co.,Ltd.,to be issued by the "China Gold-Ants Small Loan / Micro-Loan 2015-1-7 The “Special Plan for Supporting Loan Assets Support” is a case study.The SWOT analysis method was used to analyze in detail the feasibility of the asset securitization financing method for small loan companies and the special plans included: basic assets and asset pools,credit enhancement methods,and cash flow arrangements.The key nodes in the transaction structure such as the bankruptcy isolation mechanism areanalyzed.This article believes that the successful issuance of this special program is mainly based on the company's own superior qualifications,strong support from regulatory authorities,and innovative and flexible transaction structure design.Finally,based on the current status of the development of small loan companies and the success stories of CICC-ANT's special plan,relevant recommendations are made for regulatory agencies,small loan companies themselves,and special plan designs: Accelerating the construction of legislation related to the nature of small loan companies.At the same time,improve the local supervision system for small loan companies;strengthen the internal construction of small loan companies,such as improving the construction of internal control systems,improving risk management capabilities,and strengthening personnel training;and speeding up the construction of asset securitization legislation,especially for the specialization of corporate asset securitization.The establishment of the legal status of the destination carrier;emphasis on the choice of credit enhancement methods in the special plan transaction structure;promotion of the collective asset-backed securities issuance model.