Facebook:@ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1 GRADUATION THESIS Major: Banking and International Finance BUILDING A MODEL OF DEBT SECURITIZATION IN VIETNAM COMMERCIAL BANKS Facebook:@ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 2 TABLE OF CONTENTS INTRODUCTION.................................................................................................... 1 CHAPTER I: GENERAL THEORETICAL REVIEW ON DEBT SECURITIZATION............................................................................................... 12 1.1. Basics of debt securitization....................................................................... 12 1.1.1. Key concepts.......................................................................................... 12 1.1.2. Characteristics....................................................................................... 14 1.1.3. Relevant Members ................................................................................. 16 1.1.4. Conditions necessary for securitization of debts................................... 19 1.1.5. Benefits and risks................................................................................... 21 1.2. Debt securitization in commercial banks.................................................. 26 1.2.1. Overview of debt securitization in commercial banks........................... 26 1.2.2. Contents of debt securitization .............................................................. 27 1.2.3. Some methods of securitized debt outstanding...................................... 36 1.3. Experience of some countries in debt securitization................................ 40 1.3.1. The U.S .................................................................................................. 40 1.3.2. Malaysia ................................................................................................ 43 1.3.3. Lessons for Vietnam............................................................................... 44 CHAPTER II: MODEL OF OUTSTANDING DEBT SECURITIZATION OF VIETNAM COMMERCIAL BANKS.................................................................. 45 2.1. General context of Vietnam banking system............................................ 45 2.2. Status of debts in Vietnam commercial banks......................................... 50 2.2.1. Causes of debts...................................................................................... 50 2.2.2. Situations of handling the bad debts in Vietnam commercial banks..... 52 2.3. Building a model of debt securitization in Vietnam ................................ 55 2.3.1. Contents of the model ............................................................................ 55 2.3.2. Steps in the model .................................................................................. 57 2.3.3. Evaluation of debt securitization model in Vietnam.............................. 61 2.4. Conditions to apply model of debt securitization in Vietnam ................ 67 Facebook:@ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 3 2.4.2. The development of Vietnam's financial market.....................................68 2.4.3. Legal environment..................................................................................71 2.4.4. Supply and demand for the debt securitization ......................................72 2.4.5. Competitive capacity and business structure of banks...........................74 2.4.6. Support from the State bank and government ........................................75 2.4.7. Support from the financial institutions in the world...............................75 3.1. Orientation to handle debts in commercial banking system ...................76 3.2. Solutions to bring the securitization model into practice in Vietnam commercial banks...............................................................................................79 3.2.1. Actively adapt