Abstract
The large amount of non-Performing assets in China’s commercial banks has become one of the larges obstacles to China’s financial system reform. These vast non- Performing assets have threatened the development of China’s economy as well as the security of its financial system. Whether being able to resolve the difficult problem effectively is the key factor being related to China’s reform of the financial system and economic development . AS a financial innovative tool, non-Performing asset securitization (NPAS) has a lot of useful experience in abroad for years. It has notable advantages in shifting risk, improving flowability and creating credit. NPAS plays a significant role in ensuring the stable development of our finance industry. It can decentralize and reduce the risk of our commercial banks, improve the capital structure, increase capital adequacy and advance the efficiency of our banking system.