? Non-standard debt assets are also called non-standard debt assets. The definition comes from the "Notice on Regulating Issues Related to the Investment and Operation of Commercial Banks' Wealth Management Business" issued by the China Banking Regulatory Commission in March 2013 (CBRC (2013) No. 8, hereinafter referred to as Document No. 8), refers to debt assets that are not traded in the inter-bank market and stock exchange market, including but not limited to credit assets, trust loans, entrusted loans, acceptance bills, letters of credit, Accounts receivable, various types of beneficial rights, equity financing with repurchase clauses, etc.
? The background of the CBRC’s issuance of this document was that banking institutions at that time, in order to alleviate the pressure of indicators issued by regulatory agencies such as loan scale and capital adequacy ratio, had connected with trusts and securities companies through the financial management funds of various institutions. , funds and other channels to provide financial support for enterprises or projects, forming a large-scale "shadow banking" system. Objectively speaking, the emergence of shadow banking in the context of interest rate liberalization provides banks with channels to achieve business transformation and a means to increase intermediate income. Of course, the premise is also to better meet the diversified financing needs of real enterprises. Market enthusiasm and business development do reflect the needs of the development of the real economy and the urgency of the transformation of the financial system. However, because this type of business is not within the control of regulatory authorities and lacks transparency and standardization, it has become a channel for some banks to avoid supervision and hide risks.
? Therefore, in order to prevent arbitrage and avoid risks, the regulatory agency issued Document No. 8, which clearly defined non-standardized debt assets, aiming to control the investment of financial funds through various quantities and proportions. Scale,
The main types of non-standardized claims include: bond-like instruments, BJX debt financing plans, financial management direct financing tools; perpetual claims/renewable claims; trust loans. The characteristics of these types are: first, focus on high-quality state-owned enterprises and their subsidiary customers. In principle, the external rating of the core credit entities (financiers, subsidiaries or guarantors) is AA or above. They are included in the monitoring and management of non-credit lines and do not occupy on-balance sheet credit. Quota. If bond financing is affected by market fluctuations, issuance policies, etc., non-standard debt financing, especially bond-like instruments, is an important financing channel for high-quality customers. The term is mainly within one year, and the rate of return must meet the product requirements.
? Among them, the business characteristics of bond-like instruments are to supplement the issuance of bonds in the open market, and diversify financing channels to avoid over-reliance on bond issuance. Among them, the trust loan model is the preferred alternative. Compared with credit bonds, the investment ratio of bond-like instruments can reach 100, with higher compliance and more in line with regulatory guidance. However, financiers are required not to involve hidden debts and must comply with regulatory policy requirements. The issuer tends to be a state-owned enterprise that issues bonds in the open market, which is used to repay open market bonds or repay existing debts, among which the need to repay existing debts penetrates.
? The characteristic of perpetual debt/renewable debt is that compared with other financing types, it has a certain premium ability, can increase the equity of financiers, and optimize the financial structure of financiers. However, the requirement is that the financier or repurchase party must be a party with strong credit, and the funds must not be used for speculation, real estate projects, or new local government hidden debts.
? In short, the non-standard asset business has obvious advantages and disadvantages, and there are still many things worth studying and pondering.
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