The Research On The Motivation Of Commercial Bank's Credit Asset Securitization In China

In recent years,Chinese commercial banks are facing different various challenges:increasingly stringent capital adequacy requirements,high non-performing loans,and the interest rate marketization reform,etc.In the face of the great pressure of competition,the transformation of the traditional business model is imperative.Meanwhile,drawing on the foreign experience,our country restarted the credit asset securitization for commercial banks,and after that this business obtained the rapid development.The increasing number of commercial banks began to participate in securitization during the process that credit asset securitization of commercial banks is gradually moving towards normal development.In this process,the development of credit assets securitization in our country is showing some new features.Small and medium commercial banks have become a major force in securitization market instead of large state-owned commercial banks at the initial period.Although the scope of the underlying asset has been expanded,high credit rating assets are still the main choice.Although the development of credit asset securitization of commercial banks takes a favorable trend,asset backed securities still account for a relatively small proportion in bond market with a lack of liquidity in secondary market.Based on these characteristics,the motivation of commercial banks in china to choose credit asset securitization will also has its own particularity.Therefore,it is necessary to analyze the causes of credit asset securitization of commercial banks under the new circumstances.On the basis of combing the domestic and foreign related research and existing theories,this paper analyzes the possible motivation of bank securitization choice,considering the development situation of credit asset securitization.Furthermore,the paper investigates the ex-ante determinants of bank loan securitization by using econometric methods on Chinese commercial bank data from 2012 to 2015.The empirical study is carried out from two aspects:The one is focused on what makes the banks to decide to securitize their assets;the other is about what influences the quantity of asset securitization.The first part of the empirical shows that bank loan securitization is a composite decision.In general,the motivation of securitization includes five sectors:searching for profit,risk management,capital arbitrage,and benefiting from scale effect.And the impact of risk management and scale effect is relatively more significant.In addition,improving liquidity is also one of the motivations for small and medium commercial banks when choosing securitization.The second part of the empirical explains that the main motivations for banks to securitize more assets are searching for profit and capital arbitrage.Finally,combined with the above analysis and the development direction of bank credit asset securitization,this paper proposed several improvement suggestions from multiple aspects including business development of commercial banks,the construction of market environment and regulation.