The Improvement Path for Credit ABS of Commercial Banks—A Case Study of China Construction Bank

Abstract

This article focuses on the current state of asset securitization in China Construction Bank (CCB). It conducts an in-depth analysis of two areas, namely non-performing asset securitization and green asset securitization, and explores suitable improvement approaches for these two domains. The analysis analyzed the basic information of China Construction Bank’s asset securitization, including market share and other relevant factors, and takes into account the domestic and international development status and historical path, and incorporates mainstream views in academia to propose practical and significant solutions.For non-performing asset securitization, the main improvements are targeted towards the credit enhancement system and methods. The suggested approaches include the introduction of insurance and risk diversification mechanisms, as well as market adjustments to enhance the credit enhancement capabilities of non-performing asset securitization.Regarding green asset securitization, the focus lies on the pricing system as the domestic market is still in its early stages of development. The suggested methods involve improving the foundation, establishing standards, and enhancing awareness.