What are the models for trust to dispose of non-performing assets?

Trust industry is one of the four pillars of China's finance, the main source of non-performing assets of banks, and also plays an important role in the industrial chain of non-performing assets disposal of banks.

Due to the frequent explosion of trust company products in the past two years, the non-performing assets generated by trust companies have surged; In order to resolve financial risks and maintain social stability, in April, 20021,China Banking and Insurance Regulatory Commission, China issued the Notice of General Office of China Banking and Insurance Regulatory Commission, China on Promoting Trust Companies to Cooperate with Professional Institutions to Dispose of Risk Assets, stipulating and promoting trust companies to cooperate with professional institutions such as Credit Insurance Fund, Financial Asset Management Company and local AMC to dispose of inherent non-performing assets and trust risk assets of trust companies. Considering that the non-performing assets industry has been marketized and formed a perfect industrial chain, trust companies can make full use of the characteristics of their trust property, such as independence, separation of ownership and income rights, bankruptcy isolation and so on, and actively participate in the non-performing assets industry; On the one hand, we can dispose of our own non-performing assets, on the other hand, we can make profits by investing in non-performing assets.

To fully understand the disposal mode of trust for non-performing assets, we should first understand the types of trust products, then clearly understand the position of trust in the disposal of non-performing assets, and finally analyze the disposal mode of trust for non-performing assets.

Second, the text

(1) Brief introduction of trust products

Trust products have four outstanding characteristics: separation of ownership and rights, independence, limited liability and continuity, which is also a great advantage of trust in the disposal of non-performing assets. At present, trust products are being transformed under the impetus of relevant regulatory authorities. Here are a few common trust products on the market for you to have a general understanding of trust products.

20 16 Yang Jiacai, Assistant Chairman of China Banking Regulatory Commission, put forward eight trust products for the first time at the annual meeting of trust industry in China, including: creditor's rights trust, equity trust, standard trust, interbank trust, property trust, asset securitization trust, charitable trust and trading trust. Yang Jiacai said: "These eight business classifications are based on the use of funds and the source of funds. Business classification is divided from the way of use, focusing on the direction of entrusted assets, and finally forming a clear institutional arrangement to unify the balance sheet and accounting statements. "

These eight businesses all belong to fund trust, that is, trust companies accept investors to set up trusts with their legally owned funds, manage, use or dispose of trust property according to the agreement in the trust documents, pay trust income according to actual investment income, and distribute the remaining trust property at maturity. The fund trust shall be self-interested, and the trustor and beneficiary shall be the same person.

Property right trust is opposite to fund trust, and it is different from fund trust that directly gives funds to trust companies. Real right trust is a trust relationship established with specific property or real right (mainly non-capital property) as trust property; The trustee takes the income or rights and interests formed by the property as the source of trust returns.

(2) the position of trust in the disposal of non-performing assets

The biggest advantage of trust in the non-performing assets disposal industry is that it can comprehensively use property right trust and capital trust to provide a "service+finance" model.

In the process of non-performing assets disposal, trust companies have different ways to intervene and play different roles. For example, trust companies can acquire and transfer the non-performing assets of banks and asset management companies in the value discovery stage, and can also provide various services to customers in the value realization stage.

At the same time, in view of the separation, independence and limited liability of ownership and equity rights in the trust system, trust institutions have considerable flexibility in the management and application of trust property, and can realize the mutual transformation between property rights, creditor's rights and equity rights through trust beneficial rights, which plays an increasingly important role in the disposal of non-performing assets. Compared with other financial institutions, trust companies can integrate almost all financial instruments and have more diversified disposal methods. Considering the issuance of the Notice of the General Office of China Banking Regulatory Commission on Promoting Trust Companies to Cooperate with Professional Institutions to Dispose of Risk Assets, the interaction between trusts and other financial institutions, especially banks, will be continuously enhanced. Comprehensive analysis, in the disposal of non-performing assets, trust institutions should focus on cultivating four core abilities: transaction structure arrangement ability, capital financing ability, investment ability and asset disposal ability; Strive to participate more deeply in the value discovery and asset disposal of non-performing assets investment.

At present, trust companies are still in the initial stage of participating in non-performing assets investment, lacking in strength and experience, unable to match the preferences of existing trust product investors, and still need to rely on the professional technology and channels of external service providers such as banks and asset management companies in the short term. The business orientation of most trust companies is mainly based on foreign cooperation and equity participation, and it needs long-term consideration to independently develop their capabilities and cultivate them into strategic businesses.

(3) the way the trust disposes of non-performing assets

Judging from the depth and standardization of trust's participation in the disposal of non-performing assets, it can be roughly divided into the following four basic modes, which will be introduced one by one below.

1. Different modes of direct transfer of non-performing assets

The different modes of direct transfer of non-performing assets mean that commercial banks entrust non-performing assets to trust companies, and trust companies as trustees initiate the establishment of trust plans, which are subscribed by commercial banks' wealth management funds, and use the raised funds to purchase non-performing assets packages to help commercial banks realize off-balance-sheet realization of non-performing assets. Through trust holding, we can realize the accounting statements after the assets are sold, improve the bank's non-performing assets ratio and other indicators, and at the same time, through "exchanging time for space", we can transform non-performing assets into high-quality assets or reduce the loss of direct disposal in the future to obtain more benefits.

2. Different transfer modes of non-performing assets income right.

The transfer of income right of non-performing assets refers to the transfer of income right of credit assets by banking financial institutions. In 20 16, the Notice of the General Office of China Banking Regulatory Commission on Regulating the Transfer of Income Right of Credit Assets of Banking Financial Institutions stipulated the transfer of income right of non-performing assets for the first time, stipulated the relevant filing methods, declared products and registered transactions, and stipulated that its regulatory agency was Yindeng Center, and banking financial institutions should submit product-related information to Yindeng Center one by one. According to the Notice on Regulating the Transfer of Credit Assets Income Right of Banking Financial Institutions issued by China Banking Regulatory Commission in April 2065438+2006 and a series of business rules related to the transfer of credit assets income right of Yindeng Center, trust companies can raise funds to invest in the income right of non-performing assets held by banks by setting up a fund trust plan. Yindeng Center provides comprehensive services such as centralized registration, filing and auditing, circulation service, information disclosure and market monitoring. In order to prevent risks from being covered up and regulatory arbitrage by standardizing asset circulation and unified registration management, partially solve the needs of bank accounting statements, and adjust and optimize the balance, proportion and provision coverage ratio of non-performing loans.

3. Non-performing asset securitization model

Article 2 of the Measures for the Pilot Management of Credit Asset Securitization stipulates that: Credit Asset Securitization is "a structural financing activity in which banking financial institutions, as promoters, entrust credit assets to trustees, and the trustees issue beneficiary securities to investment institutions in the form of asset-backed securities, and pay the proceeds of asset-backed securities with the cash generated from the property." Non-performing asset securitization is one of the important types of bank credit asset securitization business, but as the basic assets, non-performing assets have some problems such as high asset pricing difficulty and low information transparency. From 2005 to 2008, China started the pilot project of non-performing asset securitization, and successively launched four pilot projects of non-performing asset securitization products, focusing on asset management companies. After 2008, the pilot work affected by the US subprime mortgage crisis was suspended; Until 20 16, the non-performing asset securitization business resumed, and the issuance amount increased year by year.

Compared with the last round of pilot projects of non-performing asset securitization, the newly launched non-performing asset securitization products have more types of basic assets, from the original corporate loans and corporate loans to small and micro loans, mortgages, personal mortgages and other retail business loan assets. In order to solve the problems of opaque information and low investor acceptance in the securitization of non-performing assets, the Guidelines for Information Disclosure of Non-performing Loan Asset-backed Securities (Trial) issued on 20 16 specifically put forward stricter requirements for information disclosure of non-performing loan asset-backed securities, such as issuance links, duration and major events.

If the securitization products of non-performing assets are similar to the Public Offering of Fund issued in the inter-bank securities market, then the transfer of the income right of non-performing assets is more like the corresponding private placement products. Transfer can not only introduce the hierarchical design of structured issuance, but also realize the transfer of non-performing assets of commercial banks by flattening. Due to their different natures, the regulatory agencies have different supervision over the transfer of the right to return on non-performing assets.

4. Non-performing assets disposal fund model

In the current market environment of both supply and demand in the primary and secondary markets of non-performing assets, there are more and more opportunities for active investment management of non-performing assets. Trust companies can cooperate with professional asset management companies to explore the establishment of non-performing asset disposal funds, purchase some market-oriented non-performing assets, dispose of non-performing assets through litigation preservation, debt restructuring, creditor's rights transfer, or integrate the value of non-performing assets through debt-to-equity swap, asset restructuring, introduction of strategic investors, and investment-loan linkage.

In practice, different business models can be flexibly selected and combined according to the characteristics of different asset packages and the needs of cooperative institutions.

Third, summary.

It should be noted that although trust plays an increasingly important role in the disposal of non-performing assets, there are still differences between trust business and non-performing asset investment. Trust investment and financing focuses on the main credit status or credit rating of the counterparty. Trust business generally requires strong credit of the counterparty, and also provides strong credit enhancement and strong mortgage; The investment in non-performing assets first pays attention to the value of the underlying assets, then analyzes the risks, digs deep into the value, realizes the appreciation through various disposal means, and finally quits. In addition, there are different investment ideas.

In China's financial structure with indirect financing as the mainstay, the security of the banking system is related to the stability of the whole economy and society. Although the trust has flexibly participated in the disposal market of non-performing assets of banks in various ways, the degree of participation is still greatly restricted by the external legal and policy environment, and relevant laws and regulations still need to be further improved.

Relevant laws and regulations:

Notice of the General Office of China Banking Regulatory Commission on Promoting the Cooperation between Trust Companies and Professional Institutions in Disposal of Risk Assets

First, explore various modes to dispose of risky assets in trust industry, including: directly transferring assets to professional institutions; Transfer assets to special purpose vehicles; Entrust professional institutions to dispose of assets; Anti-entrustment acquisition of trust guarantee fund companies; Other ways of cooperation. Among them, in entrusting professional institutions to dispose of assets, trust companies entrust professional institutions to provide services related to the management and disposal of risky assets, such as daily creditor's rights management, debt repayment and debt restructuring. , make full use of the advantages of professional institutions, carry out risk disposal in the early stage of assets, improve the efficiency of disposal, and realize the advance of risk disposal. As for the anti-entrusted acquisition of trust guarantee fund companies, the document points out that trust guarantee fund companies acquire risky assets in the trust industry and entrust trust companies to manage and dispose of them on their behalf, so as to alleviate the liquidity pressure of trust companies and help them resolve risky assets. Second, build a market-oriented mechanism for the disposal of risky assets in trust industry, including strengthening asset valuation management, introducing market-oriented competition mechanism, clarifying loss sharing mechanism and enhancing loss compensation ability. Third, standardize the transfer of risk assets in trust industry, including defining the scope of basic assets, effectively resolving industry risks, adhering to legal and compliant exhibition industry, standardizing accounting of all parties, giving play to the role of registration platform, and strengthening the management of credit concentration. Fourth, strictly compact the responsibilities of all parties, including the main responsibilities of trust companies, implement the collaborative responsibilities of other subjects, and strengthen the regulatory responsibilities at all levels.

Trust Law Article 2 Trust as mentioned in this Law refers to the act that the trustor entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the trustor.

Article 7 To establish a trust, there must be definite trust property, which must be legally owned by the trustor.

Property referred to in this law includes legal property rights.