Cost And Benefit Of Green Asset Securitization Of Commercial Banks

The report of the 20 th National Congress of the Communist Party of China pointed out that we should vigorously promote the construction of ecological civilization and accelerate the green transformation of development methods.In the process of China’s economic transformation from high-speed growth to high-quality development,green finance,as a link between financial industry and green industry,has injected a lot of funds to promote green economic development.Commercial banks have innovatively issued green credit asset securitization products in order to activate the stock of green credit funds.As a kind of green finance tool,green asset securitization can provide new financing channels for green industry,effectively help commercial banks to activate asset stocks,promote business transformation,and implement green finance policies.That is a new pattern of business with promotional significance.Compared to other types of securitized assets,due to their short development time,Chinese commercial banks still lack experience and research on green asset securitization.To better leverage the supporting role of green asset securitization in the green industry,more in-depth research is needed on the characteristics and shortcomings of this product.This paper takes "CMB Hexin 2022 first auto installment loan green asset-backed security" as a case to study the financing costs and financing benefits of commercial banks issuing green credit ABS,providing reference for other commercial banks to issue green credit ABS.The main text first introduces the background of the issuance of "CMB and CITIC 2022".Introduce the basic assets,credit enhancement methods and green attribute certification of the product.After that,by comparing and studying the characteristics of the product’s financing costs from different piont of view.Analyze the cost of certification ratings for the project,and calculate the fees paid to the different parties that who involved in the transaction process according to the price standards in relevant documents.In terms of case benefit analysis,the benefits brought by this issuance were analyzed from three perspectives: financial,social,and environmental.Finally,based on the advantages and disadvantages of this case,policy recommendations were put forward to promote the securitization of green credit assets in China.For example,commercial banks should focus on optimizing credit distribution,actively introducing professional talents and evaluation institutions,regulatory agencies should improve information disclosure systems,popularize and standardize third-party green evaluation and certification,the government should formulate supporting policies for green credit asset securitization,and cultivate green investors.