A Study On The Motivation Of Commercial Banks Asset Securitization

The impact of the global financial crisis in 2008 is weakening,but the debate about financial derivatives that triggered the crisis has not stopped.On the one hand,as the main cause of the crisis,regulatory is difficult to achieve in the actual operation;on the other hand,the development of the asset backed securities behind the government's push is still like a raging fire,and arbitrage covered the risk,therefore,there are still a lot of problems.During the crisis,as the promoters of asset securitization,the commercial banks suffered a lot,and exposed the great safety and liquidity problems.The crisis is over now,but if commercial banks have learnt the lessons of the financial crisis,and if asset securitization regulatory system has been more perfect,all these problems are worth studying.In this paper,beginning with the motivation of asset securitization,we study the main reasons of the asset securitization and the impact of the implementation of the filing system on these motives.By reviewing the literature at home and abroad,we summed up the reason of commercial banks securitizing credit asset mainly include expanding sources of financing,risk diversification,increasing profits and regulatory capital arbitrage;we investigate these reasons based on the recent 5 years' data of securitization,and judge whether there is regulatory capital arbitrage directly from the results,and next we study the relationship between the implementation of the filing system with the commercial bank asset securitization and the effect of motivation;then take the stability test in the end.The regression results show that expanding sources of financing,risk diversification,increasing profitability and regulatory capital arbitrage is the main reason for China's commercial banks to carry out securitization,the implementation of filing system enlarged securitization's probability;through the stability test including clustering robust standard error regression,replacing the dependent variable and adding control variables regression,showed that the regression results did not change;as for control variables,bank size has significant positive correlation with whether securitizing assets and how much times of securitization.Comprehensive results show that regulatory capital arbitrage of commercial banks is an important cause to securitizing assets,and together with the banks that obtained filing system qualification still both need to strengthen the supervision.