Research On Green Credit Asset Securitization In China's Banks

At present,China is continuing to promote the construction of a green financial system along the top-level promotion of "top-down" and the bottom-level exploration of "bottom-up",and has achieved remarkable results in the reform and innovation of green finance.While realizing its own rapid development,the social and environmental benefits of green finance have further emerged.Although China's green finance shows a rapid development trend,the funds required for green development still face a large gap.In China's green financing,green credit accounts for up to 90%,and most green projects have a long investment cycle.Commercial banks are required to provide long-term loans,but the average maturity of banks is relatively short,which may cause commercial banks to face problems of insufficient capital adequacy ratio and mismatch of assets and liabilities.If the securitization of some of the assets of green credit can be packaged out,this will not only supplement the capital adequacy ratio of the bank and alleviate the problem of the maturity mismatch of the bank's assets and liabilities,but also provide continuous funding for China's green development.However,China's green credit asset securitization has developed slowly,with problems such as low enthusiasm for commercial issuance,high issuance costs,and insufficient secondary market liquidity market.Based on this background,this article conducts research on the first domestic retail asset securitization project,"Hexin 2019 Phase I Automobile Instalment Loan"(hereinafter referred to as "Hexin 2019")that has passed the green certification in the domestic market.This article first introduces the issuance background of "Hexin 2019",gives a brief overview of the product's basic assets,credit enhancement measures,and green certification,and then discusses the product's basic asset quality,dispersion,transaction structure,and green certification.In terms of advantages and disadvantages,we then analyze the cost of product issuance and the effect of issuance.Through the previous analysis,it is concluded that the product quality is good,the transaction structure is relatively complete,and the issuance interest rate is low.However,there are also deficiencies such as a higher concentration of basic asset brands,additional issuance costs,and poor secondary market liquidity.On the basis of the above analysis,policy recommendations have been made to promote green credit assets in China,such as business focusing on the quality and dispersion of basic assets,regulators may consider exempting or reducing the risk retention ratio of commercial banks?Innovative and actively managed green CLO model,and the government grants certain Issue subsidies and cultivate investors' green ideas.