Definition:

Loan restructuring: refers to the process that the bank adjusts the repayment terms of the loan contract because of the borrower's financial situation deterioration or inability to repay. Loans after loan restructuring are called restructured loans.

The so-called bankruptcy reorganization means that when the enterprise is insolvent, the management can apply for bankruptcy reorganization.

Loan restructuring must follow the following principles:

Principle of effective restructuring: loan restructuring can play a positive role in reducing credit risk and loan loss;

Standardized operation principle: loan restructuring must be operated and approved in strict accordance with the prescribed conditions and procedures;

Principle of appropriate preferential treatment: Loan restructuring can implement certain preferential treatment within the scope permitted by the policy, so as to facilitate the recovery of loans.

Principle of bankruptcy reorganization:

First of all, it helps creditors avoid losses due to insolvency in bankruptcy liquidation;

Second, it helps employees to prevent a large number of unemployment caused by the dissolution of enterprises and the social shock it brings;

Third, it is beneficial for enterprises to avoid damaging their reputation due to bankruptcy. Nevertheless, the liquidation form of bankruptcy is still the main form of bankruptcy, which promotes the flow, redistribution and reorganization of assets and plays a role in structural adjustment and supporting the superior and eliminating the inferior.

Second, the difference between loan restructuring and restructuring loans

1, the concept is confusing.

Regarding the restructuring loan, the Guiding Principles of Loan Risk Classification is interpreted as "refers to the loan borrowed by the bank due to the deterioration of the borrower's financial situation or inability to repay the loan". Later, "concession" was changed to "adjustment". This also includes the explanation of loan restructuring to some extent. However, it seems too narrow to limit the adjustment content to the repayment terms of the loan contract. In practice, reorganization can adjust the main contract-loan subsidiary contract-guarantee contract; Not only modify the repayment terms, but also adjust the repayment subject and interest rate.

Loan restructuring means that when the borrower has financial difficulties and foresees that he can't repay our loan on time, we will safeguard the creditor's rights and reduce losses, and reach an agreement with the borrower to modify the loan repayment conditions and adjust the loan, repayment period, applicable interest rate and repayment method on the premise of effectively strengthening risk prevention.

2. Loan restructuring is an operation process, and loan restructuring is an operation.

3. Loans before restructuring can be called heavy loans or restructured loans. After the loan is restructured, the restructured loan becomes a restructured loan.

Third, what is the difference between loan restructuring and restructuring loans?

1, the concept is confusing. Regarding the restructured loan, the Guiding Principles of Loan Risk Classification is interpreted as "a loan that the bank makes concessions to the repayment terms of the loan contract due to the deterioration of the borrower's financial situation or his inability to repay". Later, "concession" was changed to "adjustment". This also includes the explanation of loan restructuring to some extent. However, it seems too narrow to limit the adjustment content to the repayment terms of the loan contract. In practice, reorganization can adjust the main contract-loan contract, or change its subordinate contract-guarantee contract; Not only modify the repayment terms, but also adjust the repayment subject and interest rate. Loan restructuring means that under the circumstances that the borrower may encounter financial difficulties or the assets of the borrower and guarantor are reorganized, resulting in the failure to repay the loan on time, the bank and the borrower reach an agreement to modify the loan repayment conditions and adjust the borrower, guarantor, guarantee method, repayment period, applicable interest rate and repayment method on the premise of effectively strengthening risk prevention.

2. Loan restructuring is the operation process, and the restructured loan is the operation result.

3. The loan before restructuring can be called a restructured loan, and the restructured loan is a restructured loan. After the loan is restructured, the restructured loan becomes a restructured loan.

4. What do 4.MBS, CDO, ABS and CLO mean respectively? What are their uses?

MBS: mortgage-backed bonds or mortgage securitization. It means that the principal and interest generated by the mortgage subject are transferred to the investors of MBS intact, so MBS is also called used securities.

CDO:CDO business is a collective debt business, which is an innovative product based on asset securitization technology and produced by restructuring assets such as bonds and loans.

ABS, that is, AssetBackedSecurities, is a security issued by pooling assets other than real estate mortgage claims into an asset pool. In fact, it is the popularization and application of MBS technology in other assets.

Clo: short for chieflearningofficer. CLO is responsible for the organization's intellectual resources, and CLO is responsible for maximizing the organization's intellectual capital output. CLO is a senior manager who comprehensively manages all kinds of intellectual resources from the perspective of organizational strategy and provides guarantee for the organizational development of intellectual resources.

The asset pool of MBS is the creditor's right of real estate mortgage loan, while the asset pool of ABS is the creditor's right other than real estate mortgage loan, such as credit card accounts receivable, rent, car loan and so on. CDO's asset pool is mainly debt instruments, such as high-yield bonds, emerging market corporate bonds, national bonds and bank loans.

The difference between ABS and CDO in economics;

1.ABS refers to assetbackedsecurity, which means packaging and selling all kinds of valuable assets for financing.

Valuable assets can be cars, fixed assets, etc.

Second, CDO is an asset-backed security, but it has two additional features.

1 First of all, the assets in the CDO asset pool are of poor quality, such as the company's accounts receivable, credit card limit, student loans and so on.

2. Secondly, CDO will set up a fixed income cash flow level, usually called tranch, to build the risk sharing of early repayment of CDO.