Asset securitization
Asset securitization effective way to resolve bad loans
Bbad loans of the banking system in China becomes increasingly severe,in-depth analysis of the status of bad loans,its theoretical and practical analysis of the causes,explore solutions to the problem of bad loans banks has become an urgent task.Securitization is a common international practice to deal with bad as- sets.Through securitization,the banks can withdraw funds in advance and upgrade the potential value of their bad assets.Developed countries like the United States,Italy,Japan and South Korea have lots of successful precedents,but because of China’s bad assets securitization lack of stable funding stream,it embodies a u- nique Chinese characteristics,coupled with law,accounting,tax,supervision and other aspects lack of matc- hing requirement,and thus it needs to strengthen based construction for the massive bad assets securitization.
The Risk of Credit System for the Bank Loans Securitization
In view of the process of forming the asset pools,the quality of bank loans is better in a society with the good credit system than in that with the bad credit system,so does the initial quality of asset pools in the process of securitization,and the credit system restricts the efficiency of securitization.From the evolution of asset pools,we can see that the borrowers don’t have the motivation of default in a society with the good credit system no matter the bank is or not willing to convert the loans into the securities,but the bank has the motivation of loans securitization and the borrowers have the motivation of default in a society with bad credit system,so the bank loans securitization will causes the default rate to increase and the quality of asset to decrease gradually in the evolution of asset pools.
Risk of Development of Reverse Mortgage in Commercial Banks
The development of reverse mortgage in commercial banks can increase the new service type,expand the market and obtain more profits space.To carry out the reverse mortgage in our country not only need the perfect and reform of the commercial bank itself,but also need the connected constructions from other organizations,such as policy push of government,the change of the old people’s idea,and perfect law system of real estate.What’s more,it needs to develop the social service industry including evaluation profession of the real estate,life supervision and forecast profession etc.
Non-performing Asset of Commercial Bank and Countermeasures
This article,based on non-performing assets and the limitations of its existing disposal methods,addresses the necessity of the non-performing assets securitization.Furthermore,according to the characteristics of the non-performing assets,it illustrates the feasibilities of the non-performing assets securitization.It proposes that,though the non-performing assets are far from the ideal conditions of the Asset Securitization,appropriate technical handling would still make it entirely possible to develop practical securitization program.
Dual Reconstruction of the Banking and Overall Market Risks—-A Case Study on Citigroup in Subprime Crisis
What Citigroup lost in the subprime crisis reflects the overall market risks that banks have to face during the tremendous changes from both institutions and products and exposes the dual disconnection between the functional supervision system and bank’s internal control mechanism. It is proposed in Development of Treasury Blueprint for a Modernized Financial Regulatory Structure in 2008 that an objective-based optimal regulatory framework should be established. Chinese commercial banks,in a comprehensively transformed period,should lay a firm foundation for the supervision and coordination mechanism according to Law of the People’s Republic of China on the People’s Bank of China,reinforce the supervision on financial holding groups’ market stabilization,construct and amplify internal control system aiming to the cooperative risks among diversified businesses,comprehensively execute the Baselâ…ˇ and steadily further the credit asset securitization.
Analysis of Asset Securitization of Commercial Banks in China
Asset securitization,which has been carried out by commercial banks in China,has shown prominent effects in transferring risk,raising revenue,opening up new channels of funding,increasing profits,and alleviating tight liquidity.The government should provide a more favorable financial and legal environment for asset securitization of commercial banks and the latter should also tighten risk management to insure a stable development of asset securitization.
Study on the Current Situation and Problems of Asset Securitization in China
The paper briefly introduces the concept and the trade structure of asset securitization from systematical analysis of market classify,motivity, motivation of bank,pricing,initiator and basic asset.It figures out the condition of asset securitization.Thus,it puts forward some suggestions law and trade rule unify,expanding investor range,consolidating fluidity of securities based on asset including risk control.
Countermeasure Analysis on Asset Securitization Implementation in China
Asset Securitization is regarded as one of the most important financial tool’s innovations in the twentieth century.The condition of developing property securitization and the feasibility of implementing property securitization has been prepared in China.The housing collateral loan is the bank’s assets and is adopted for an origin of issuing bonds and also as a cutting-in point of carrying out asset securitization,that is,the commercial bank will sell residential building mortgage loan to some special agencies,changing the bank’s assets to cash ahead of time,and then the special agencies will organize these assets’ credit guarantee and rating,at last bonds will be issued.There exists some risks during this course,some corresponding proposals to promote the development of property securitization in our country are put forward from the angle of the policy and system.
The Warning Signs of Subprime Mortgage Crisis to Chinese Commercial Banks and Countermeasures
This paper introduces the waning signs of American subprime mortgage crisis to Chinese commercial banks,probes into the mortgage loan risks faced by Chinese commercial banks,and points out that the financial institute should strengthen the management of mortgage loan risks.
Feasibility Study on Urban Infrastructure Loan Securitization
In recent years,the urban infrastructure loans have increased rapidly due to the acceleration of urbanization.And as a result the contradiction between the increasing loans and the limited local finance capability become extrusive,and the potential risks are concerned by more and more people.A new infrastructure investment and financing model was discussed and established using the theories of asset securitization in this thesis.This model is the infrastructure loan securitization model(finance-bank-securities),which can combine the organizing advantages of governments and the financing advantages of banks in the domain of infrastructure project finance.By establishing the mechanism of”entry at governments,hatch at financial institutions and exit at capital markets”,the linking and bridging functions between the governments and markets of the financial institutions can be utilized effectively,and the contradiction problems between the developing urbanization and the limited local finance capability can be solved.
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