Study On The Legal Issues Of Assets Securitization

Born in the United States, with a history of over40years, asset securitization gradually gained worldwide concern. This not only attribute to its function of accelerating capital flow as well as high security and a series of other advantages, but also attribute to the defect exposed during the use of this innovative financial instrument. And the defect has undoubtedly caused turmoil in financial markets. How to avoid the market instability caused by improper control of risk and financial supervision?"Risk isolation" of assets plays a decisive role in the process.From the legal perspective, the "risk isolation" process of "to be securitized assets" is divided into "true sale" and "bankruptcy isolation". Due to the differences of the legal origin and legislative procedure, corresponding procedure to complete the two steps is also not the same.Through the development of asset securitization, the banks of china not only can optimize capital structure, enhance the competitiveness of banks, but also can increase the domestic investment channels. Therefore it has important significance in our country. Although it's not long to carry out securitization in our country, but the related practice and academic discussions are numerous. China can accumulate our own experience as well as learn from other countries'success, to develop a better financial market of our country.