On Loan Securitization

Loan securitization is highly effective in preventing finance risks and promoting the liquidity and safety of bank loans, so it is profoundly affecting banking and the whole financial system. The smooth undertaking of securitization demands institution and thorough regulations, which enable the operating subjects to form a thorough and effective system among themselves. This thesis is focused on certain important problems during the course of loan securitization and makes an outline of the activity. The thesis consists of three parts: The first part (Chapter 1) includes retrospection and a concise analysis of the development of loan securitization. Furthermore, the basic theoretical frame is founded. The second part (Chapter 2, 3, 4, 5) is the body of this thesis. It centers around several of the most important problems of the course of securitization, taking in its influence on banks and financial system, the organization and functions of transaction mechanism, risk management and risk-avoiding technique, and the institution arrangement directly related to accounting, taxing and law. The last part (Chapter 6) bases on the above theoretical analysis and analyzes the feasibility of loan securitization in China, Moreover, it puts forward certain proposals of its real practice on housing mortgage.