Analysis Of Non-performing Loan Securitization Of Commercial Banks

In recent years,the non-performing loan balance and non-performing loan ratio of commercial banks in China have continued to “double rise”.Especially in the current economic restructuring,the problem of non-performing assets of commercial banks has become more and more serious,which not only affects the liquidity and safety of commercial banks,but also increases the risk of the entire financial system.Nonperforming loan securitization is one of the effective ways to solve the bad assets of commercial banks,however,the research and practice of non-performing loan securitization in China started late and lacked experience.After the global financial crisis broke out in 2008,the domestic non-performing loan securitization business was suspended.Until 2016,the practice of non-performing asset securitization of commercial banks was restarted,and a number of pilot banks were announced to ensure the steady development of non-performing asset securitization of commercial banks.Among the first batch of pilot banks announced in China,China Merchants Bank,as a joint-stock bank,has demonstrated an efficient operation mechanism and innovation capability.According to statistics,from 2008 to November 2018,China Merchants Bank initiated a total of 28 asset securitization projects,with a total issuance scale of 148.36 billion yuan.The distribution of the “He Cui” series of products was in good condition and has won the trust of many investors.The reason of China Merchants Bank vigorously develops the non-performing loan securitization business is that,on the one hand,it has a strong demand for non-performing loan securitization due to its large scale of non-performing loans.On the other hand,the securitization business has a unique advantage in handling non-performing loans,and the contribution of bank non-performing loans is outstanding.Based on the introduction of the related concepts and principles of non-performing loan securitization,this paper deepens the systematic understanding of commercial banks' nonperforming loan securitization,and analyzes the current situation of non-performing loans and traditional disposal methods,and finds that traditional disposal methods have certain disadvantages.Unable to meet the huge non-performing loan market demand,nonperforming loan securitization has broad development space;and through the analysis of China Merchants Bank related business and projects,it is found that China Merchants Bank has rich experience in non-performing loan securitization practice and collection management.The summary of the project's advantages and disadvantages provides an important reference for further exploration and development of non-performing loan securitization business.