Asset Securization

Credit Asset Securization

*Product Definition

The credit asset securization refers to assets backed securities issued in the inter-bank market with priority and inferior level and approved by or filed with CBRC and PBC, with credit assets as the underlying and trust plan of trust company as the SPV. It reorganizes the risks and cash flows of assets structurally and uses cash flow generated from the underlying credit assets to pay for the principal and interest of assets backed securities.

*Service Types

(1) The Bank launches securization business with self-run credit assets and provides investors with securization products for investment.

(2) The Bank can also serve as underwriter or financial consultant, and provide financial consulting and bonds underwriting services for credit assets securization products issued by other financial institutions. Such services include the design of trading structure for credit asset securization, measurement and analysis for quantitative model, filing of regulatory materials and bonds underwriting.

*Service Advantages

(1) Release credit quota effectively, provide quality financier with more credit resources;

(2) Adjust and optimize the structure of credit assets;

(3) Increase revenues from intermediary businesses;

(4) Control the scale of loan, and ease the pressure of loan to deposit ratio;

(5) Vitalize stock credit assets, increase capital usage efficiency and profitability.

*Applicable Scope

Banking financial institutions that meet the requirements on Administrative Measures of Credit Asset Securization Pilot by Financial Institutions, or other financial institutions that meet regulatory rules.