Bank asset securitization refers to the process in which banks transform credit assets that lack liquidity but have future cash flows through structural restructuring into securities that can be circulated in the financial market to finance funds. The following is what I have compiled for everyone, for your reference, welcome to read!
Chapter 1:
In order to expand market share, GMAC has launched a huge low-interest installment payment activity. It also supports the sales of consumer loans provided by companies to consumers by issuing corporate bonds. Before 1986, GMAC's financing in the capital market amounted to US$26.6 billion, of which US$17.8 billion was in the form of bonds. GMAC also used bonds six times to sell $8.8 billion in auto receivables, but all of these receivables were sold in the form of pass-through securities. Although the probability of default on GMAC's accounts receivable is less than 1% and the credit risk of pass-through securities is basically non-existent, investors in securities must bear the risk of early repayment by car consumers. U.S. interest rates have been on a downward trend since reaching their highest post-war level in 1984. Investors often suffer a great risk of falling interest rates when reinvesting. This security structure is not conducive to the further development of GMAC's receivables securitization.
In the autumn of 1986, GMAC’s installment promotion launched a wave of excitement. In order to attract investors and avoid the credit risk caused by diversifying its debt portfolio, GMAC decided to adopt a new structure-asset Supported securities to sell $4 billion in auto receivables.
Chapter 2:
On September 3, Hankou Bank issued credit asset-backed securities worth 2.01195 billion yuan in the national inter-bank bond market. Bohai Bank also recently released an announcement that the scale of credit asset-backed securities to be issued on September 10 is 3.67197 billion yuan.
Since the beginning of this year, bank credit asset-backed securities have been intensively issued, and many commercial banks such as Shanghai Pudong Development Bank***, Bank of Jiangsu, and Shunde Rural Commercial Bank have joined the issuance team. Industry insiders analyze that the expansion of participating institutions and the increase in the types of underlying asset pools are typical features of the new round of credit asset securitization expansion, and its multiple effects in revitalizing bank credit assets and easing liquidity pressure are emerging.
"Credit asset securitization is currently in the third round of pilot projects and is expected to enter a normalized development track." Zeng Gang, director of the Banking Research Office of the Institute of Finance, Academy of Social Sciences, told reporters that for banks, credit Asset securitization is equivalent to "off-balance sheet" some assets, which can reduce risky assets to a certain extent, and then the pressure on banks to raise capital to supplement capital will be alleviated.
In the basic asset pool of asset-backed securities of some banks, the loan period is relatively long, such as 3 to 5 years. For banks, this is a long period of capital occupation and may bring a lot of risks. Especially in the process of interest rate liberalization, bank deposit interest rates are rising and stability is declining, which means that the cost of bank deposits is getting higher and higher and the terms are getting shorter and shorter. If the asset side is matched with long-term liquidity Lower loans will bring liquidity pressure. Therefore, the issuance of credit asset-backed securities can accelerate the liquidity of bank assets.
It is worth noting that while the issuance of credit asset-backed securities is accelerating, many banks are also accelerating the issuance of secondary capital bonds. In August alone, many banks such as Agricultural Bank of China, China Construction Bank, and CITIC Complete the release. Some analysts believe that although the bank capital adequacy ratios disclosed in the interim reports of the 16 listed banks are generally high, with the strengthening of supervision on shadow banking, interbank business, and wealth management business, this part of the business will gradually be "returned to the balance sheet" in the future. After the report disclosed, banks' non-performing loan ratios generally increased, with many banks' non-performing loan ratios exceeding 1%. Banks objectively need to supplement capital to increase their provision coverage ratio.
Zeng Gang believes that from the perspective of meeting the capital adequacy ratio, credit asset securitization is reducing the scale of bank risk assets, while the issuance of secondary capital bonds is to increase capital. One is to reduce the denominator. One is to expand the numerator, which will help banks increase the speed of capital flow and improve the mismatch of asset-liability maturities to a certain extent.
Chapter 3:
In 2005, my country launched a pilot program of credit asset securitization. However, when the second batch of quotas ran out in 2007, it coincided with the outbreak of the U.S. subprime mortgage crisis. , domestic credit asset securitization came to an abrupt end. On May 17 last year, the central bank, the China Banking Regulatory Commission and the Ministry of Finance issued the "Notice on Matters Concerning the Further Expansion of the Pilot Program of Credit Asset Securitization", officially restarting the securitization of credit assets. The decision of the State Council executive meeting on August 28 this year brought a new round of credit asset securitization to the forefront.
A series of statements received positive responses from banking institutions. In addition to the securitization pilot projects for relatively stable credit assets such as industrial and commercial loans, housing, and car loans, securities based on credit card accounts receivable are also Chemical products are also just around the corner.
As a typical securitization product of accounts receivable, its main participants are the initiator***, the seller of accounts receivable, Ping An Bank***, and the service provider*** Ping An Bank***, original debtor*** cardholder***, issuer*** China Construction Investment Trust Products***, financial consultant*** Lujiazui Financial Assets Exchange*** and investors, etc. The above institutions each have different roles in the asset securitization market. What needs special attention is that SPV is a trust product established by a trust institution. It is a trust entity with the sole purpose of securitizing accounts receivable. It is only engaged in a single business: purchasing securitized accounts receivable, integrating receivable equity, and issue securities as security. It is completely legally independent from the original asset holders and is not affected by the bankruptcy of the sponsor. All of its income comes from the issuance of accounts receivable-backed securities. The trust institution collects and manages securitized accounts receivable through special collection accounts, and is responsible for repaying principal and interest to investors in accordance with the securitization entrustment agreement.
However, the product’s relatively low yield has also been criticized. This ABS-like product of Ping An Bank has a capital threshold of 1 million, but the yield is only 7%-7.5%. Puyi Wealth data shows that in the first week of September, trust companies issued 28 products with an average term of 23.89 months, an increase of 2.29 months month-on-month. Among them, the average highest expected yields for 12 months, 24 months, and 30 months are 8.96%, 9.79%, and 10.20% respectively. At the same time, some people in the industry pointed out that the current yield rate of *** trusts starting at 1 million is generally around 8.5% to 11%.
It is obvious that the rate of return offered by Ping An Bank is difficult to attract. The wealth management products launched by various banks now have a high rate of return. There are many products with more than 5% to choose from, and even more Not to mention the relatively high-risk products launched by foreign banks, it is no longer unusual for the yield rate to be 8%. The yield rate is lower than that of trust products of the same period, and some insiders are worried that its demand may be suppressed.
Chapter 4:
Alibaba’s asset securitization has been submitted to the China Securities Regulatory Commission for approval. This will be China’s first loan securitization for small and micro enterprises and individual entrepreneurs, which will have a great impact on China. Solving the financing difficulties of small and medium-sized enterprises also has role model significance.
E-commerce companies such as JD.com, Suning, and Tencent have also entered or are preparing to enter the field of small loans. Alibaba’s asset securitization undoubtedly provides the first solution to the problem of the source of loan funds that these companies also have. road. Small loans for e-commerce companies are provided to small and micro enterprises and individual online business entrepreneurs on e-commerce platforms. Therefore, asset securitization has become an effective means to solve the financing difficulties of small and micro enterprises and individual entrepreneurs, and is an effective way for finance to better serve the real economy.
Alibaba’s three platforms, Alibaba ***B2B***, Taobao ***C2C***, and Tmall [Weibo] ***B2C***, have an overwhelming number of merchants Most of them are small and micro enterprises or even individuals. These customers basically do not receive loan support from traditional finance, and their development is subject to financial constraints, which in turn restricts the development of the platform provider Alibaba Group. It is for this reason that three years ago, Jack Ma, the head of Alibaba, publicly said: "If the banks do not change, Alibaba will change the banks."
In 2010 and 2011, Zhejiang Alibaba Loan and Chongqing Ali Small Loan Company were established respectively.
These two small loan companies provide pure credit micro-loan services of "small amount, short term, borrow and repay anytime" for small and micro enterprises and individual online business entrepreneurs on the Alibaba platform who are unable to obtain loans through traditional financial channels.
Although these credit loans are unsecured compared to traditional bank loans, the bad debt rate is lower than the average bad debt rate in the banking industry by relying on the historical transaction data of the Alibaba platform to judge the customer's credit status. Through this, Alibaba's three major businesses of "platform, finance, and information" have formed a positive interaction. The e-commerce platform provides a large amount of historical transaction data, which in turn provides sufficient loan item information for the financial business. For small and micro enterprises and individual entrepreneurs who have difficulty in financing, Alibaba's small loan business further attracts them to become Customers of Alibaba e-commerce platform.