We define bank private placement ABS as a bank credit ABS product whose basic assets and transaction structure are similar to those of corporate credit ABS, but which is not publicly issued in the interbank market. Generally speaking, the basic assets of private placement of ABS by banks are bank credit or credit-like assets, which can be mainly divided into: (1) self-operated loans (2) self-operated non-standard assets (3) wealth management non-standard assets.
Broadly speaking, bank credit ABS can be divided into five categories according to the place of issuance: peers, exchanges, quotation systems, banking centers and places without issuance. Among them, the products issued by banks are public offerings and the rest are private offerings.
The main differences between public offering ABS and private offering ABS are: (1) the range of assets that can be pooled; (2) examination and approval institutions and distribution efficiency; (3) product nature. This difference is also reflected in the private placement ABS issued by banks in different places.
Generally speaking, from the issuer's point of view, the distribution efficiency has gradually improved among the five types of products: peers, exchanges, quotation systems, banking centers and non-distribution places. From the scope of assets that can be pooled, the basic assets corresponding to inter-bank ABS are self-operated loans, while the assets of exchanges and quotation systems are generally non-standard assets, all of which exist in Yindeng Center and are issued without quota. Among them, the inter-bank market issuance has the strictest requirements for assets, while the bank center and no place issuance are more relaxed.
From the perspective of investors (mainly banks), capital occupation and product nature are two key points. In terms of capital occupation, according to Annex 9 of the Measures for Capital Management of Commercial Banks (Trial)-Measurement Rules for Risk Assets of Asset Securitization, 20% of the capital should be withdrawn for asset securitization products rated AA- or above. The "ABS" products issued by Yindeng Center and Nowhere are not ABS products recognized by the regulatory authorities (only a structural product), but at present, they generally refer to the capital accrual method of ABS.
In terms of product nature, ABS products issued by banks and exchanges are standardized assets. The products issued by Yindeng Center belong to "non-non-standard" and are listed separately. Products without local distribution are non-standard assets. For quotation system products, "standard" or "non-standard" depends on the identification of different banks.