Research On Mortgage-backed Securitization Institution In China

As a financial innovation, mortgage-backed securitization (MBS) has been the most important part of international financial market since 1970s.It provides a series trade rules, conventions and organizational arrangements for all participators, thus it provides a new kind of financing order in economic and establishes a kind of new housing financing institution actually. This paper defines it as Mortgage-backed Securitization Institution (MBSI). This new housing financing system introduces the structured financing techniques, and it has the following significance: increasing the liquidity of financial asset, reducing risks via diversification, ameliorating the condition of property and liabilities for the financing institution, raising the ample rate of capital, enhancing the financial support to the housing industry and pushing the national economy growth.Two greatest missions of our country are the housing system reform and financial systems deepening currently. The magic power of MBSI makes us believe that it is very necessary to introduce this institution in China.Based on the experience of MBSI in developed countries, from the view angle of the institution economics, this paper analyzes the factors of MBSI innovation in China, tries to explain the path of MBSI innovation, and puts forward some suggestions to implement MBSI in the near future in our country.This paper is composed of four parts totally; the basic structure is following:Chapter 1 gives a definition to the Mortgage-backed Securitization Institutionand summarizes the functions of MBSI after inducing the general theories of new institution economics.Chapter 2 mainly introduces the institutional arrangements and the traits of the MBSI, at the same time, introduces and summaries the features of Mortgage-backed Securitization Institution in the USA.Chapter 3 analyzes the rewards and costs of the MBSI innovation. The research indicates that commercial banks' latent reward is not obvious now, but in the near future their will of MBSI innovation will become stronger increasingly, thus commercial banks will be the protagonist of MBSI innovations in the end. Because the income of the institution innovation will be far larger than the cost, the government will become the protagonist. It is obviously that agency organization, investor, and real estate development company will benefit from it, and they are protagonists.Based on the analysis of conditions and existing obstacle of China, the last chapter gives some policy suggestions for China's MBSI.