Analysis On The Financial Effect Of Credit Asset Securitization On China’s Commercial Banks

Asset securitization is one of the tool which developed most rapidly in the world of financial field since the 1970 s.With the rapid development of economic globalization,asset securitization has been deepened and promoted,which brought a steady stream of energy to the financial market.As a structured financing activity,it will inevitably have a certain impact on its issuer.Therefore,this paper aims to study the fnancial impacts of credit asset securitization on commercial banks,and proposed some recommendations to its develpment.This paper studies the financial effect of credit assets securitization on China’s commercial banks by selecting the relevant data of China’s listed banks that have issued credit asset securitization products.First,this paper introduces the relevant literature review and theory;Second,this paper introduces the principles of the credit asset securitization,and then introduces the history of China’s credit asset securitization,the development of its primary and secondary markets and the characteristics of its development in China;Third,the paper analyzes the internal mechanism and theoretical basis of its financial effect of credit asset securitization on China’s commercial banks by using the comprehensive FGLS method.The results show that the financial effect is improved effectively,which obviously improves the liquidity effect and the safety effect,and the improvement of the profitability effect is not obvious.Finally,combined with China’s actual development and international advanced experience,put forward relevant suggestions from two parts of the business banks and market environment respectively to improve the financial effect,including moderately expand the scope and type of basic assets,flexibly adjust the proportion of subordinated securities,strengthen risk identification and control,improve the legal regulatory system,and actively promote the development of secondary market and so on.