Study On The Disposal Of Non-Performing Assets Securitization Of Commercial Banks

China’s commercial banks have seized the opportunity and achieved their own development in the transformation from the planned economy to the market economy.But influenced by factors as the business philosophy,credit risk control,government intervention and so on,the scale of non-performing assets of commercial banks is also expanding,and thus makes the commercial banks bear a heavy burden,an increase of commercial banks operating risk in the process of development.As a result,the securitization of non-performing assets became the important solution to the problem of disposal of non-performing assets in commercial banks.This paper did some analyses and found out that,firstly,there are many factors that lead to the formation of non-performing assets of commercial banks in China.The inner reasons(the less complement of crediting risk control system,the over simple of pawns,and the imperfect management in the whole loan process)are the root reasons.And the outer reasons(such as the imperfect social credit system,the borrowing enterprise factors,and the failure in the punishment mechanism)are the promoting factors.Secondly,the economic effect of securitization of non-performing assets is as follows:improving the structure of financial system,improving the efficiency of financial system;improving financial security and stabilizing national economic development;enriching China’s financial products market;reducing information asymmetry,reducing transaction costs;asset securitization promotion Economic growth;increase market financial investment in new products,multi-party participants to provide revenue opportunities.Thirdly,the general process of carrying out the securitization business of commercial banks can be summarized as follows:Asset pool construction-establishment of Special Purpose Vehicle-credit enhancement-credit rating-securitization product sales.Then,taking NINGBO OF BANK CO.,LTD as an example,this paper analyzes and discusses the securitization of bad credit assets.At the same time,based on the data of non-performing assets of NINGBO OF BANK CO.from 2004 to 2016,the GM(1,1)model is used to forecast the change of non-performing assets in the next five years.Combined with the case analysis,the article finally put forward to promote the development of China’s commercial banks non-performing assets securitization,from the improvement of non-performing assets securitization operation of the external market environment,enhance the credit rating ability and strengthen the professional personnel training level etc to improve.