Research Of Analyzing And Controlling The Risks Of Our Nation’s Credit Assets Securitization Of Commercial Banks

Asset securitization is a kind of financial intermediation, as well as a kind of financial market innovative tool. By designing securitization structure, illiquid asset securities are transformed into asset-backed securities, and traded in the financial market. As a new tool, it brings benefits to the financial market, at the same time, it also brings risks. Especially after the2008subprime mortgage crisis, a growing number of scholars and experts have been aware of its risks. Because of China’s credit asset securitization business of commercial banks was in its infancy, so we should concern those vigilant risks in the development process of the credit assets securitization of commercial banks, and develop effective control strategies and circumvent to prevent the occurrence of the risks.A lot of participants are in the operating process of credit asset securitization business of commercial banks. Because of their own interests or other factors, every participant will bring and also face risks. With the opening up of China’s financial market deepening and deepening, the commercial banks are facing huge challenges and pressures. So they must accelerate the development of the securitization of credit assets,. However, since our country in all the aspects of asset securitization is not mature enough and perfect laws and regulations are not legislated, risk control awareness and means are still relatively backward, based on the analysis of the risks which commercial banks may suffered in the process of credit asset securitization, this paper\proposed control strategy corresponded, and analyze problems, put forward solutions of how to solve problems in accordance with the facts of China’s national conditions and the conditions of financial market.This paper includes six chapters.Chapter1:introduction. In this chapter it introduces the background of this paper, points out that researches of analyzing and controlling the risks of credit assets securitization of commercial banks have theory value and practical significance. It also introduces the related studies at home and abroad and addresses the content, method and innovations of this paper.Chapter2:the theoretical basis of credit assets securitization. This chapter introduces the definition, characteristics and classification of credit assets securitization briefly and introduces the basic operation process of credit assets securitization in detail. This chapter makes preparations for the next chapters.Chapter3:the analysis of the risks of credit assets securitization of commercial banks. This chapter classified the risks of credit assets securitization of commercial banks into four kinds-operating risk, environmental risk, credit risk, market risk, and analyzes each kind of risk.Chapter4:the control of credit assets securitization of commercial banks. This chapter summarized the general strategies of how to control risks in management firstly, then it puts forward the control strategies according to the risks of credit assets securitization of commercial banks of our country discussed in chapter3in detail which are the control of operation risks, the control of environment risks, the control of credit risk as well as the control of market risk.Chapter5:the problems and suggestions of credit assets securitization of commercial banks of our country. According to the actual situation, this paper analyzes the problems of credit assets securitization of commercial banks of our country and puts forward policy suggestions accordingly.Chapter6:summary and expectation. This chapter concludes the content of this paper and points out the deficiencies of it in order to study it deeply in the future.In this paper, it uses two research methods:one is combing the theoretical analysis and empirical study, the other is combing summary of inductive and deductive reasoning.There are two innovations in this paper: one is carding and summarizing the researches of analyzing and controlling the risks of credit assets securitization systematically. The other is combining the theoretical analysis of credit assets securitization of commercial banks and the actual conditions of our country and puts forward the strategies of how to control risks which is full of guiding significance to the practice. There are also two deficiencies in this paper: one is in the process of credit assets securitization of commercial banks, the risks interact and influence each other and they are not exist lonely, each kind of risk has complex relations with each other. Since my ability is limited, this paper studies and proposes control strategies of the risks separated. So, the followed researches, will analyze and discuss the interaction of each kind of risk. The other one is because of the difficult of getting data of credit assets securitization of commercial banks, it is difficult to quantifying the risks exited. So, in this paper it only proposes strategies and suggestions from the aspect of qualitative analysis which may exist subjectivity. The followed researches will get more data in order to do quantitative analysis and put forward solutions.