A Study On Credit Asset Securition On The Operating Performance Of Chinese Commercial Banks

With the continuous development of economy,the competition of commercial banks is becoming more and more fierce,the banks are generally faced with the problem of poor liquidity,financing difficulties,high non-performing loan ratio,and low capital adequacy ratio.As a new financial instrument,Credit Assets Securitization has been widely used by commercial banks in recent years.In 2016,there are more and more products of Credit Assets Securitization,the liquidity of the financial improved significantly,the stock market exceeded trillion,and the development of securitization becomes normal.With the continuous expansion of the scale,the impact of Credit Asset Securitization on the performance of commercial banks will increase,so this study will become more valuable.In this paper,the theoretical analysis and case analysis are combined to explore the impact of Credit Assets Securitization on the performance of commercial banks from three aspects of liquidity,security and profitability.First of all,this paper introduces the basic theory of Credit Assets Securitization and the current situation of our country.Secondly,the overall analysis of the effect is carried out.Concluded that Assets Securitization brings cash flow to commercial banks,and increases the liquidity of banks.At the same time,Credit Assets Securitization transfers the risk of the underlying asset,and the capital adequacy ratio has been improved to help banks meet the needs of regulatory authorities.And commercial banks not only as promoters but also as the service provider,access to service costs,and expand the development of off balance sheet business.If the underlying assets are non-performing loans,banks will not only deal with bad loans effectively,but also reduce bank's provision coverage to enhance the profit of the current period.Finally,selecting Jianyuan 2015 RMBS as a case study.CCB did not issue Credit Asset Securitization products in 2014,so we analyzed the impact on the performance of commercial banks by comparing the changes of the relevant indicators in 2014 and in 2015.The indicators includeliquidity,security,and profitability.The indicators that reflect liquidityinclude the liquidity ratio,the deposit ratio,and net cash flow.The indicator that reflect security is the capital adequacy ratio.The indicators that reflec profitability include return on assets,return on equity,earnings per share and net interest rate of return and so on.Through analysising,I sure the positive impact of security and liquidity,but the profit performance of banks is not obvious.Finally I put forward some feasible suggestions according to the conclusion.In short,the development of Credit Asset Securitization still has some problems,but we can not deny its advantages.We still needs long-term exploration.