The Impact Of Credit Asset Securitization On The Capital Adequacy Ratio Of Commercial Banks In China

Asset securitization is a great creation of the 20 th century,its emergence as the world’s financial markets added new vitality,make the situation of the financial markets are thriving.Banks are the main participants in the financial markets,it can be part of the securitization of credit assets,thus less liquidity of credit assets can be sold to special institutions,Banks get a lot of cash flow,accelerated the flow of the Banks’ capital efficiency.At the same time,also can transfer part of the bank risk assets securitization,improve the Banks’ capital structure,increase the profit,this for Banks in management provides a new operating mode.Currently China’s economy is in the trough,enterprises are in trouble,lead to bad bank assets ratio have been rising,through the use of asset securitization is a financial tool Banks can better solve the problem they face.Theoretically bank to carry out the securitization of credit assets will be from two aspects to improve the bank’s capital adequacy ratio,on the one hand,by improving the liquidity and reduce the financing cost and improve the bank’s net capital;On the other hand,is directly reduce the total risk-weighted assets of Banks,but that is the case also need to test using the actual data.This article selects 10 listed commercial Banks in China from 2012 to 2016,the quarterly financial statements data,according to the statistics of F value use hybrid model of panel data,the empirical study on the current our country ten listed commercial Banks to carry out the securitization of credit assets on its capital adequacy ratio,the different nature of the asset securitization with the result of the role of bank capital adequacy ratio and the degree of effect.Results show that the non-performing loans as the foundation assets securitization can significantly improve ten listed in our country commercial bank’s capital adequacy ratio,and use good loans securitization will make our country ten listed commercial Banks,capital ratios are dropping,and because of China’s banking credit asset-backed securities since 2012,most of them are good use loanssecuritization,the amount of non-performing loans securitization accounted for only1.4%,so eventually led to the bank after the implementation of securitization of credit assets to reduce their capital ratios,the excessive use of excellent Chinese commercial Banks loans securitization caused their capital ratios are dropping.According to the results of the above analysis,put forward to reduce the size of the loan securitization,increase in non-performing loans securitization can effective Suggestions to improve the capital adequacy ratio of commercial Banks in China.