1. Non-performing asset securitization (NPAS) includes securitization of non-performing loans, quasi-performance loans, restructuring loans, non-performing bonds and debt repayment assets. NPAS has a history of more than 20 years, and the United States, Italy, Japan and South Korea are the most active countries. The common feature of these countries is that they have been plagued by bad debts in the banking system.

2. Asset securitization has special requirements for a country's legal, accounting and tax systems. In countries or regions experiencing financial or banking crisis (especially in Asia), the demand for disposal of non-performing assets has become the main driving force to promote the local asset securitization market and its system construction. The development of NPAS depends on the urgency and government support of countries to solve the risks in the banking system.

3. The continuous improvement of 3.NPAS transaction structure can more effectively solve the asymmetry between securities cash flow and non-performing assets cash flow, adapt to the diversity of disposal methods, and thus expand the types of non-performing assets that can be securitized.

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(1). Asset-backed securities are issued by the trustee, representing the share of trust beneficial rights of special-purpose trusts. The trustee is limited to the trust property and undertakes the obligation to pay the income of asset-backed securities to the investment institution. Its payment basically comes from the cash flow generated by the asset pool that supports securities.

② Assets that can be used as collateral for asset-backed securities are divided into two categories: existing assets or receivables and future assets or receivables. The former is called "existing asset securitization" and the latter is called "future cash flow securitization".

(3) Loan securitization refers to the process that commercial banks convert loans into securities through certain procedures. Generally speaking, asset securitization refers to the process of issuing securities in the market according to the future cash flow of assets. Traditional securitization is a direct financing way to raise funds by issuing securities in capital market and money market to form investment capital, which can be called "first-class securitization".

The narrow sense of asset securitization is a kind of financial innovation, especially the process of disposing of assets by issuing securities based on financial assets. The funds recovered from the sale of securities can be used as a new source of funds for commercial banks to issue other loans. It is a kind of asset securitization, in which banks collect assets that lack liquidity but have stable cash flow expectations and turn them into securities that can be sold and circulated in the financial market. This is a financing process.