Securitisation and Bank
Contents
METHODOLOGY 2
Statement 3
I. Close-up at Securitisation 3
1. Definition of Securitisation 3
2. Process of Securitisation 3
A. Process Breakdown 3
B. Explanation on Some Terms 6
3. Benefits from Securitisation 7
A. Cost Effective 7
B. Higher Liquidity 9
C. More Opportunities for Income 9
D. Less Credit Risk and Interest Risk 10
4. Drawbacks of Securitisation 10
II. Development of Securitisation 11
1. The United States 11
2. The United Kingdom 11
IV. Securitisation and Chinese Banks 12
1. Present Situation 12
2. Pricing of Non-Performing Loan. 13
3. Securitising Fiduciary Loans. 14
4. Setting up an SPV 14
A. A Bad Bank 14
B. Investment Bank Bloc 15
5. Obstacles in the Way 15
V. Conclusion 15
Bibliography 16
METHODOLOGY
Statement
I. Close-up at Securitisation
1. Definition of Securitisation
2. Process of Securitisation
A. Process Breakdown
B. Explanation on Some Terms
1. Credit Enhancement
2. Credit Rating
3. Benefits from Securitisation
1. Basle Agreement
2. Capital Adequacy Management and Regulatory Costs
B. Higher Liquidity
C. More Opportunities for Income
D. Less Credit Risk and Interest Risk
1. Credit Risk
2. Interest Risk
4. Drawbacks of Securitisation
II. Development of Securitisation
1. The United States
2. The United Kingdom
IV. Securitisation and Chinese Banks
1. Present Situation
2. Pricing of Non-Performing Loan.
3. Securitising Fiduciary Loans.
4. Setting up an SPV
A. A Bad Bank
B. Investment Bank Bloc
5. Obstacles in the Way
A. Financial System
B. Investor's Psychology
V. Conclusion
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