Research On Financing Model Of Green Credit Asset Securitization

In accordance with the Report on the Work of the Government in 2019,it is necessary to speed up the development of green finance and improve the environmental economic policy in order to boost the prevention and control of pollution continuously,promote the development of domestic green industry and win the fight to keep our skies blue,our waters clean and our land pollution-free.The credit aid provided by commercial banks to green projects is an important step in the green finance.The combination of the asset securitization,as an innovative tool in the financial market,and the green credit asset can reduce the risks of commercial banks and release more incremental funds to support the green industry.The Hexin asset-backed security at first installment of the car loan issued by China Merchants Bank in 2019 was the first labeled green retail product with“consumption + green” characteristics in our country.Its smooth release has not only provided a practical experience in the green asset securitization business,but also provided a new idea for commercial banks to choose the underlying assets for its subsequent green asset securitization business.The thesis first reviews and collates the relevant concepts and research progress on the asset securitization of the green credit in detail.From a macro perspective,this thesis analyzes the current development situation,existing problems,the feasibility and advantages of green credit asset securitization financing model in China.Then the thesis illustrates the involved elements during the release and design of the asset securitization products of the green credit such as the release background,transaction structure,overview of the asset pool,purpose of the raised money and the green certification,and also analyzes the cash flow and income distribution,credit enhancement and pricing process of the case product by taking “19 Hexin” as an example deeply.Furthermore,the impact of product issuance on China Merchants Bank is analyzed from the perspective of risk prevention and issuance benefits.Finally,the thesis concludes the case and finds that the underlying assets of the product released this time are high quality,its risk level can be controllable generally and it has a strong demonstration effect.However,in practice,there are also some shortcomings of the product,such as high concentration of underlying assets,limited issuing scale and lack of external credit enhancement mechanism mostly.Therefore,the thesis finally proposes corresponding enlightenment and policy suggestions for the shortcomings of asset securitization products and the problems faced by green credit asset securitization market in China.In view of the shortcomings of "19 Hexin",this thesis holds that commercial banks should optimize the green asset selection structure,strengthen product diversification and innovation,and introduce external enhancement methods.In addition,for the problems existing in the development of green asset securitization in China,the suggestions given in this thesis are as follows: Firstly,as the commercial banks lack enthusiasm for participation in the asset securitization of the green credit,commercial banks themselves can make a reasonable and proper product innovation on the current business rules to make full use of the securitization benefits to the commercial banks.The supervision organizations can directly lift commercial banks’ enthusiasm for the asset securitization business of the green credit by means of relaxing or even risk immunity to the risk retention rules concerning the asset securitization business of the green credit.Secondly,in order to improve the secondary market liquidity of green credit asset securitization products,green credit asset securitization products can be introduced into market maker mechanism for market making transactions.Thirdly,with regard to the imperfect policy of current asset securitization policy of the green credit and the low market information disclosure,the supervision organizations can first promote the unification of place of issue and place of registration concerning the green credit ABS and improve the requirement on the information disclosure policy.