Study On Disintermediation Risk Mitigants Based On Credit Derivatives

As a call for china's market-oriented economic reforms, the development of direct financing constitutes an important part of china's financial reform and development.the process of china's strategy for the implementation of direct financing development will undoubtedly intensify the bank's "financial disintermediation" pressure.in recent years, a process of disintermediation has been underway in china banking,with a gradual long-term decline in the contribution of traditional lending activity to the business mix of banks and the ratio of net interest margin to total income.it also bring a range of banking risks, such as credit risk and liquidity risk.credit derivatives provide more active and efficient credit risk management tools for commercial banks and create new investing channels for insurance company,fund and investment bank at the samen time.In the light of commercial banks,credit derivatives are conducive to reducing the increment of loan loss,diversifying credit risk exposure, increasing revenue and enhancing the liquidity of loan market,and thus play an important role in disintermediation risk mitigation.This thesis explores the correlationship between the credit derivatives and financial disintermediation, and on this basis, it analysis the disintermediation of our present situation and how to use credit derivatives to mitigate the disintermediation risk.In chapter one,I give a brief introduction of credit derivatives and disint of ation,which including the definition of credit derivatives and disintermediation.in this chapter,I also introduced the related theory research at home and abroad.we can get the basic knowledge of credit derivatives and disintermediaton from this chapter.In chapter two, Bank disintermediation Phenomenon and the characteristics of bank disintermediation were analyzed.Chapter three analysis the release means may be taken when the bank in the face of disintermediation pressure, and on this basis, give a further study on the reason why banks undergoing disintermediation are more likely to transact credit derivatives.In Chapter four, With previous studies and qualitative analysis of the preceding, Proposed the Suppose that bhcs which face pressure of disintermediation is the important reasons leading to credit derivatives trading volume growth.and then give a further study on the correlationship between the credit derivatives transaction and financial disintermediation based on the penal data from america's derivatives market . The empirical results are as followed : bhcs which is undergoing disintermediation are more likely to transact credit derivativesIn chapter five, we put forward some useful measures for the usage of credit derivatives in commercial banks.