Analysis On The Practice Of Credit Card Non-Performing Asset-Backed Securitization In China

The securitization of non-performing assets of commercial banks has been practiced in China as early as2005.But only after three years,affected by the global financial crisis in 2008,China suspended the development of the securitization of non-performing assets of commercial banks.In recent years,China's macro-economy has resulted in the increasing non-performing loan ratio of commercial banks.Therefore,China has started to suspend the securitization of non-performing assets for eight years based on the development experience of other countries.As first non-performing asset securitization product of credit card,the case of this paper-"hecui 2016-1" has high research value for commercial banks how to properly handle the non-performing assets of credit card,and proves that the market has full recognition and acceptance for this kind of products.This paper first introduces the basic principle of non-performing assets securitization and in China,and analyzes the motivation of non restart of non-performing assets securitization.Secondly,taking the first phase of non-performing asset-backed securitization in 2016 as the starting point,the paper studies the typical cases,focusing on the analysis of the basic assets,transaction structure,cash flow reimbursement mechanism and credit enhancement measures of the product to understand the design structure of the product and summarize the success of the product And problems still exist in the distribution process.Risk prevention and control is a key step in the product issuance and trading.In this paper,KMV model is selected to measure the default probability and analyze the credit risk of the products in depth,and verify that the default probability of the securitized products is very low,and the expected loss and credit value at risk of the products are low.Then this paper summarize the market effect after the product is released:the product cannot improve the market value of the company in the short term,but can bring a certain positive wealth effect;in the long term,the product can bring the positive effect of the decline of non-performing loan rate and the increase of capital adequacy ratio.The product creates a new way to deal with the problem,solves the problem of the valuation of the non-performing assets of credit cards,and initiates the valuation model of the non-performing assets of credit cards.It is important to measure the credit risk of products and put forward specific measures to improve risk prevention and control for optimizing the structure design of follow-up products and promoting the healthy development of China's non-performing asset securitization.Finally,the paper raise suggestions,such as improving the legislation of asset securitization,speeding up the market construction,establishing the official information platform of securitization products,improving the pricing mechanism of asset securitization,talent cultivation and product innovation.