The Research On The Asset’s Choice Of Credit Asset Securitization Of Commercial Banks In China

Credit asset securitization is an important financial means or a tool which can reducefinancing cost, improve bank’s liquidity and raise capital adequacy rate. Due to the differentimplementation plan, the effect of securitization will inevitably produce differences. Thispaper takes securitization choice as a breakthrough, analyzing under different constraints, howcommercial banks choose different nature and type securitization and how to make a good useof it.Firstly, this paper reviews the research status at home and abroad and defines the conceptand classification of credit asset securitization. Secondly, it expounds the development ofsecuritization in the rest of the world. In the author’s opinion, choices of securitization shouldbe chose according to different environment and historical conditions. Then, under theconstraint conditions of the capital adequacy, the liquidity and the profitability, the paperanalyzes the effect of different types securitization and makes the optimal choice. Combinedwith the current situation of commercial banks, the paper considers that the outstanding loanswith high risk eight is the best choice under the conditions of the capital adequacy. Theoutstanding loans with lower rate is the optimal choice under the conditions of the liquidity.Choosing lower rate non-performing assets is the greatest choice under the conditions of theprofitability. And under special conditions, securitization will not only reduce the commercialbank’s rate of return, but also improve the overall level of profitability. From the dynamicpoint of view, the actual situation and the development of commercial banks should be takeninto account.Finally, after reviewing and analyzing the practice of credit asset securitization in ourcountry, the paper conceives of the development of securitization in the future.