Essence And Effects Of Asset Securitization

1. Asset securitization is a kind of financial technique that transforms the structure ofthe bank creditor's rights. In this part, the paper first explores the essence of assetsecuritization from the aspect of a pair of transformations (space transformation andtime transformation). In addition, in order to enrich the exploration of the essence ofasset securitization, the paper adds two more comparisons (fund source comparisonand the hidden relationship comparison). Then, the paper analyzes the procedureflow of structure transformation and several ways to realized the structure change. Atthe end of this part, the paper analyzes the status and role of special purpose vehicle(SPV). The paper points out that SPV is the central element in the framework ofsecuritization transaction, the vehicle of cash flow transformation and securitiesissuing (the first role), the conduit that organically combines bank allocation andsecurities allocation (the second role) and the bridge connecting first layer asset tosecond layer asset (the third role).2. In this part, the paper analyzes the cause of asset securitization and answers thereason for the birth of asset securitization. In this part, the paper emphasizes that,with the progress of supervision technology, the optimum system arrangementbalance has changed, which caused the system evolution of financial systemsupported by asset securitization technique. This is the deep-seated cause of assetsecuritization.3. In this part, the paper further analyzes the status and role of asset securitization inthe evolution of financial system. The status of asset securitization is that, with thedevelopment of asset securitization, the evolution of financial system goes from themarket-oriented phase to the securitization phase, which is symbolized by the assetsecuritization. Asset securitization assumes the status of leading the tide of financialdevelopment. The role of asset securitization is reflected as follows: in thesecuritization phase, the bank's risk can be reallocated through capital market; thebasic characteristic of bank's creditor right has changed; financial system's innerstructure changes and system evolution has made contribution to the overallperformance of economy system; the unbundling mechanism, which can improve theefficiency and the investor appraisal mechanism, which can improve the governancestructure have been brought into the bank, which works as intermediary.4. In this part, the paper analyzes the micro-influence of asset securitization form twoaspects, namely offsetting the bank's flaws and the micro economic balance of bankorganizations, thus making the research on asset securitization more specific anddeepened from the micro aspect.5. Another aspect, which is symmetrical to asset securitization's micro impact on theoperation of bank, is its impacts on the money market. In this part, the paper choosesto point out four aspects of impacts: the impact on money supply, impact on theequilibrium of money market; the impacts on the risk structure of interest rates andthe impacts on the transmission path and mechanism of money policy. The reasonfor this choice is to make the paper more theoretical and pertinent.6. In this part, the paper demonstrates the successful experiences of the countrieswith advanced financial system and the experiences and lessons our country canuse for reference.