Research On Green Credit Asset Securitization Issues And Countermeasures

"Promoting green development and harmonious coexistence between human bei ngs and nature" is one of the main contents of China’s 14 th Five-Year Plan,which me ans that green development has become an inevitable choice for China’s future high-q uality economic development.Finance plays an extremely important role in economic development,and the quality and structure of its allocation of funds are crucial to the realization of the goal of high-quality economic development.In recent years,China’s financial institutions have actively practiced the concept of green development,impro ved their awareness of green services,and made useful explorations in the design and innovation of green financial products.Green credit asset securitization is the product of this background.Compared with other green financial instruments,green credit ass et securitization has its unique advantages,which not only can lower the financing thr eshold and enhance asset liquidity,but also can improve the green reputation of enterp rises and generate certain environmental effects,which is a product combining econo mic and social benefits.Therefore,in order to support the development of green econ omy,ICBC,with the strategic goal of "building a leading international green bank",to ok green credit asset securitization as a structural and innovative financing tool and is sued "ICBC Zhiyuan 2021" on September 9,2021."This is the first green auto install ment credit ABS product issued by a commercial bank in China.Translated with www.Deep L.com/Translator(free version)Translated with www.Deep L.com/Translator(free version)Based on the literature of domestic and internatio nal research,this paper uses information asymmetry theory,reputation theory,expecte d income theory and the basic principles of green credit securitization as the theoretic al guidance,takes "ICBC Zhiyuan 2021" as the case study,collects and organizes the relevant data and supporting materials of the product,and investigates the quality of u nderlying assets,product pricing,credit enhancement,green credit ABS,and green cr edit ABS.We collected and compiled relevant data and supporting materials of the pr oduct,and made a comprehensive and in-depth analysis of its underlying asset quality,product pricing,credit enhancement,green certification,and duration tracking.The c onclusions are as follows: the quality of the underlying assets of the product is at a me dium level,the credit enhancement measures of the product only use internal credit en hancement,the green certification ensures the green attributes of the product,the prod uct has brought certain economic benefits to the issuer,and has also produced good ex ternal social effects.However,there are also problems of collateral devaluation,incon sistent green certification standards,lack of external credit enhancement measures,an d high early repayment rate.Based on this,this paper proposes the following counter measures: government departments should improve the information disclosure mecha nism,take effective measures to encourage the participation efforts of banking financi al institutions,introduce relevant laws and regulations to regulate the green certificati on system regulations of green credit asset securitization products;originating instituti on should improve the quality of underlying asset elements,enrich the types of underl ying assets,improve the early repayment risk prevention mechanism,and appropriatel y use a combination of internal and external credit enhancement measures,and incorp orate environmental risks into stress tests;investors should establish green investment concepts and learn green investment expertise to improve investment returns.