Research On Financial Influences Of The Credit Asset Securitization Over The Bank

Asset Securitization is the most important and far-reaching financial innovation in the21st century. It originates from the successful practice of the United States and expands around the world rapidly and widely.As the most basic kind of Asset Securitization,Credit Asset Securitization has a significant influence on Chinese financial market."The Guidance of Finance supports Economic Restructuring and Industrial Transformation and Upgrade" issued on July1,2013by General Office of The State Council specifically pointed out that Chinese banks should "revitalize the stock" and "promote the development of Credit Asset Securitization gradually". After that, The Executive Meeting of the State Council, which take place on August28,2013decided to further expand the pilot of Credit Asset Securitization. Obviously,Government have come to realize the significant role Credit Asset Securitization plays in "revitalize the stock". However, as a type of structural financing activities, it will inevitably have a certain financial influences on banks. And if such influences against the interest of the bank, it will not have a bright further. Therefore, this paper aims at studying the financial influences of the Credit Asset Securitization over the bank and making improvement Suggestions. In addition, in the current practice, there is a dilemma that Non-Performing Loans Securitization cannot get enough support from the regulators and Performing Loans Securitization which supported by regulators are not favored by banks. This paper will also discuss its roots and cracking method.In this paper, the first chapter introduces theories about financial influences of the Credit Asset Securitization over the Bank. The second chapter briefs the meaning, principle and key procedure of it, and then moves on to discuss why it should be divided into two categories. The third chapter discusses the financial influence of the Credit Asset Securitization over the bank from the aspects of safety, profitability and liquidity respectively. The fourth chapter analyzes two cases and finds out the root of dilemma and cracking method. The fifth chapter proposes two suggestions for two kinds of Credit Asset Securitization’s improvement respectively. The sixth chapter summarizes the point of this paper and prospect the future research.The main contributions of this paper are as follows.Firstly, studying the financial influences of the Credit Asset Securitization over the bank both in theory and practice. Secondly, not only distinguishing the non-performing loans securitization from the performing loans securitization but also finding out the roots of dilemma and cracking methods respectively. Finally, proposing two suggestions to improve the financial influences of the Credit Asset Securitization over the bank.The inadequacies of this article are as follows. Firstly, the research on financial influences of Credit Asset Securitizationwhich is a highly integrated and complexityinnovationhas blind point unavoidably. Secondly,the study of two typical cases is not enough to have a comprehensive understandingof the financial influences of the Credit Asset Securitization over the bank.Finally, this article only focuses on the most obvious flawsof two types of Credit Asset Securitizations and ignores others.