Financial/Asset Securitization

Credit Asset Securitization

1. Product Definition

The credit asset securitization refers to assets backed securities issued in the inter-bank market with priority and inferior level and approved by or filed with CBRT and PBT, with credit assets as the underlying and trust plan of the trust company as the SPH. 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.

2. Service Types

1. Bank of Shaoxing launches a securitization business with self-run credit assets and provides investors with securitization products for investment.
2. Bank of Shaoxing can also serve as underwriter or financial consultant, and provide financial consulting and bonds underwriting services for credit assets securitization products issued by other financial institutions. Such services include the design of trading structure for credit asset securitization, measurement and analysis for quantitative models, filing of regulatory materials and bonds underwriting.

3. 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.

4. Applicable Scope.

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