The Asset Securitization Of Commercial Banks

Since 2013, China’s financial market has experienced a rapid development of interest rate marketization, along with a burst of asset securitization market. Both the endogenous and exogenous asset securitization investment of domestic commercial banks brought significant impact on the banks’ asset liability structure and investment return.In this article elaborates the future opportunities and risks of asset securitization related to China’s current financial market. Meanwhile from the perspective of domestic commercial banks, this article gives an in-depth analysis of several issues in asset securitization including security issuance, investment processes, transaction structures, laws and regulations, business demands and accounting rules, etc., and also it offers commercial banks a clear guidance in issuing or investing in asset securitization products. In addition, this article also illustrates the different types and characteristics of the existing asset securitization products in China’s financial market and their operation process.