Study Of The Maturity Mismatch Risk Of Bear Stearns

Financial innovation wave began in the 1950s, making a profound impact on the reshaping of the financial system. Not only widen the deep extension of traditional commercial banking connotation and operation, but also emerging a new type of financial intermediary, making financial transactions more complicated, chain financing more long. An important issue highlighted in the 2008 outbreak of the subprime crisis out, that is, financial intermediaries because of the risk arising from maturity transformation occurred, namely in the form of more money-market deposit liabilities to replace the liabilities of commercial banks and other financial mediation appears to create gold, generating business model, mortgage financing for similar assets or high-yield securities, which are the risk of complicated. Due to the above changes in the context of securitization are highly developed implementation, therefore, national regulators on how to build measurement and regulatory factors introduced securitization liquidity risk issues become heavy current theoretical research and practical operation of priority.State Council executive meeting held in April 2015, it was decided by continuing to improve the system, simplify procedures and encourage first registration, autonomous issued in installments; and invested 500 billion to support the new exchange-traded securities products, scope to expand this pilot securitization.As China continues to develop asset securitization, the financial system will be gradually dominated by the bank to a market-oriented transition, and amplifying the risk of maturity transformation-induced problems will continue to emerge. Especially in recent years, a large number of financial intermediaries in the wholesale market for short-term borrowing led to excessive maturity transformation, induced a huge liquidity risk.This paper attempts to risk American Bear Stearns maturity transformation triggered by the study as a starting point, through in-depth and detailed analysis of its balance sheet, stated maturity transformation-induced risk characteristics, so that a more thorough study of the Bear Stearns and deep-seated reasons for its takeover, and summed up for their failure experience rewarding experience.Through Bear Steams’case studies, we believe that due to the severe period of Bear Steams assets and liabilities do not match, resulting in excessive maturity transformation, induced a number of risks, the risk of failure by its management lessons learned, we to come to change their business models, strengthen capital management, and with the regulatory authorities to strengthen supervision of the conclusions. Conclusion of asset securitization growing China also has a good reference.