The Impact Of Non-performing Asset Securitization Of Commercial Banks On Its Financial Performance

In 2018,the balance of non-performing loans in China's banking industry exceeded 2 trillion yuan,and the non-performing loan ratio reached 1.83%,reaching a historical peak.Commercial banks are under tremendous pressure.Compared with other non-performing asset disposal methods,non-performing asset securitization can not only improve the disposal efficiency of non-performing assets,reduce bank leverage,increase capital adequacy ratio,but also diversify bank credit risk,promote supply-side structural reform,and increase direct financing ratio.It has an important significance for commercial banks themselves and the financial system.Based on the above background,this paper summarizes the practical roads and existing obstacles of commercial banks' non-performing asset securitization based on the related literatures on non-performing asset securitization at home and abroad,and analyzes the path of the impact of commercial banks' nonperforming asset securitization on their financial performance.I use the factor analysis model,take the commercial banks with non-performing asset securitization products issued before 2017 as example,and the impact of commercial bank's non-performing asset securitization on its financial performance is analyzed empirically.The results show that: In the short term,non-performing asset securitization of commercial banks can improve their financial performance.The impact of non-performing assets of commercial banks on their financial performance is not significant in the long run.The smaller the size of commercial banks' assets,the greater the impact of non-performing asset securitization business on their performance.Based on this,I propose some countermeasures including diversified market participants,improving professionalism of participating entities,cultivating credit rating companies and improving the legal system.The article not only enriches the relevant theories of non-performing asset securitization in China,but also provides a valuable reference for the practice of commercial banks in China.