Research On China's Financial Supervision Of Asset Securitization Market After The Subprime Mortgage Crisis

Asset securitization is a new financing technique which comes out from the U.S.A. in recent years. Since the 1990s, asset securitization has been more and more popular in the international capital market. For adapting for the international economic circumstance as soon as possible and using the new financing technique to serve our market economy, it is necessary to discuss about the legal issue relating to asset securitization. The object of this thesis is to how to govern and control crisis in the asset securitizations by strengthen administrative regulation.The text includes four chapters.This thesis is beginning with the introduction of subordinated debt and its attribution. And it introduces the general concept, function, limitation, production and development of subordinated debt in detail. Then, it talks about the production and development of the subordinated mortgage loan and subordinated debt in America. We can know some background knowledge of the subordinated mortgage loan and subordinated debt in America through the condition of law, market, assets securitization and technology for the production and development of subordinated mortgage loan and subordinated debt in America.The second part is to analyze the reasons which result in the economy crisis. The lack of administrative supervision is one of the most important factors of subordinated debt crises. Asset securitizations are complex and easy to be out of control, we must keep the balance of initiating financial creation and crisis control.The third part discusses some legal regulation issues about asset securitization of China. This part introduces the current status and legislation status of national asset securitization practice. Current legislation of asset securitization is only limited to the level of departmental rules or even just the form of the notification and no asset securitization legislation raise to the level of basic laws. There is urgent need for the development of special unification of the asset securitization legislation and legal regulation.According to the influence and enlightenment for China, this part has proposed some suggestions. Firstly we must make some principles of supervision, and then strengthen the risk management of the Chinese house property financial market by that the commercial banks should strength the auditing of qualification for the individual real estate mortgage loan and standardize the procedure of examination and approval for the individual real estate mortgage loan. At the same time, commercial banks should improve the robustness of credit, strengthen risk management and advance the construction of risk filter system. Secondly, strengthen the financial supervision of China further. The financial supervision department of China should strength the supervision of the credit risk of the real estate through using many kinds of financial instruments and requiring the banking institutions implementing the series of policies and demands for real estate credit. At the same time, the financial supervision department of China should perfect the model and system of supervision and improve the ability of dealing with the financial crisis.