The Efficiency Of Chinese Commercial Banks’ Securitization Of Credit Assets

In recent years, the development of China’s commercial banks are facing difficulties.On the one hand, the loss of deposits resulting in commercial banks’ funds face tight liquidity; on the other hand, a series of financial innovation, such as the Internet Finance,affects the profitability of commercial banks; at the same time, affected by the international financial crisis, the regulatory authorities enhanced the capital constraints regulatory requirements. Under this background, our country learned from foreign experience and restarted the commercial bank credit asset securitization, in order to improve the liquidity,security and profitability level of the commercial banks. However, on the issue of the scale,secondary market trading conditions and Basic asset choice, our securitization business have its own development characteristics. Especially, there are big difference in the Basic asset aspect between western countries and China, western countries mainly choose Bad assets while China mainly choose Quality assets. Different Basic asset face different loss rate, different risk, and different securitization costs, all of these differences may affect its effect. Therefore, it is particularly important to analyze the effect of commercial bank credit asset securitization during its implementation period.In this paper, there are three aspects of research content. Including, the liquidity effect, profit effect and security effect of the credit asset securitization to commercial bank.Firstly, analyzes the inherent mechanism of the liquidity, safety and profitability effect.Then, because of our country’s credit asset securitization is different from foreign countrys’ in Basic asset, so this paper try to use mathematical model to make a concrete analysis of different Basic asset securitization to commercial banks’ different influence. And then,summed up the current situation of China’s commercial bank credit assets securitization’s basic assets and its reasons. Then combined with the relevant data of China’s commercial banks, using the empirical model to text the liquidity, safety and profitability effect of China’s commercial bank credit asset securitization business. The results show that China’s credit asset securitization business has positive effects on commercial banks in liquidity and safety aspects, but in terms of profitability aspect, it plays an opposite role. This paperanalyzes the reasons for this phenomenon are as follows: Firstly,our country commercial bank credit asset securitization business is still in the initial stage, Secondly, its scale is still small and more choice the high quality credit assets as the Basic assets, Thirdly, the secondary market trading is not active enough. Finally, this paper combined with the direction of the current reform of China’s financial and our commercial banks’ reality,proposed several improvement suggestions from multiple aspects for our country’s commercial bank credit asset securitization business future development. Including business links, transaction structure, and the market environment. In order to further give full play to the credit asset securitization business in improving the level of liquidity, the capital adequacy ratio and the profitability of commercial banks.