ASSESSMENT OF THE QUALITY OF THE ASSET POOL FORMED FOR SECURITIZATION IN THE CONTEXT OF ANALYTICAL PROVISION OF THE MANAGEMENT SYSTEM

The lack of an effective methodology for the analysis of asset securitization operations causes problems in the formation of a strategy for managing the process of financing the activities of the initiator of the securitization. The article substantiates the areas of analytical support of the management system in terms of asset securitization: the formation of financial and economic justification of the feasibility and feasibility of securitization of assets (study of potential investors and analysis of prospects for placement of securities; diligence); assessment of the original assets of the originator for the possibility of their securitization; identification of the impact of securitization of assets on the financial performance of the originator; assessment of risks associated with the use of securitization of assets); analysis of the quality of the asset pool generated by the originator for securitization; evaluation of the effectiveness of securitization operations for its initiator. It is also proposed to analyze the quality of the pool of assets generated by the originator for securitization, in the following sequence: assessment of the probability of default and the amount of expected losses on the pool of assets to be securitized; identification of factors influencing the early repayment of pool assets; assessment of the parameters of the formed pool of securitized assets, based on the analysis of its structure and the selected system of indicators; modeling of future payment flows in the pool of securitized assets, which provides the formation of analytical information to decide on the possibility of securitization using the assets available in the originator and diversification of risks through optimal concentration of assets.

Did Asset Securitization Affect the Banking Financial Performance?

This study investigates the impact of asset securitization on banking financial performance. The authors examined the effect between the independent variables (Asset-backed securities (ABS), Loan Loss Provisions (LLP), and Size), and the dependent variable (Return on Assets (ROA), Size has a moderating variable effect on Return on Assets. The banks improved profitability (ROA) by selling their loans receivable portfolio to the capital market to get liquidity. Furthermore, the bank significantly changed the role of acting as intermediaries between borrowers and depositors for the last decade. The authors used a sample of 12 commercial banks from Southeast Asian Countries and the regression model used for panel data analysis from 1998 to 2018. The results show that Asset-backed securities have found a significant positive Return on Assets. However, some empirical evidence found that asset securitization increases Profitability decreases Loan Loss Provisions and reduces bank securitization’s default risk. For future research, it is recommended to explore several variables to get a better result bank’s financial performance, such as Return on Equity, Debt to Equity Ratio, and Net Interest Margin.

Study on Risk Management of Green Asset Securitization in Longyuan Power

In recent years, with the continuous attention and construction of the combination of environmental protection and economic benefits at the national level, green economy has become the focus of attention in the current industry. The green industry dominated by pollution prevention, resource recycling, new energy technology and other industries can make up for the lack of financing ability of enterprises mainly in green industry in traditional banks and capital markets. As an important part of green economy, green asset securitization is developing into a bridge. It is connecting social capital and green industrial enterprises. Green asset securitization will bring more powerful economic support to the development of enterprises. This paper takes China’s green industrial enterprise Longyuan Power Group Co., Ltd. as an example to analyze the risks of green asset securitization to the enterprise and the risk management measures. Focusing on the practice, the paper studies the development status and future trend of green asset securitization on enterprises.