Research On The Credit Asset Securitization In Bank Of Luoyang

In recent years,the situation has changed as the rapid development of China’s economy.The slowdown in growth rate and macroeconomic downward pressure have made the domestic economy face a more severe test.The economic restructuring and the in-depth reform of the capital market are urgent.How to effectively activate existing credit assets and continue to inject vitality into the real economy is a problem faced by all financial institutions.As a new type of innovative financial product,credit assets securitization has been a hot spot focused by commercial banks.The application of this product will promote the reform of financial market in China.Therefore,this paper regards LY Bank as the research object,deepl y analyzes the problems encountered by LY Bank in the process of developing and puts forward countermeasures to the main problems,which plays a theoretical and practical significance to the healthy development of credit assets securitization in LY Bank.After consulting the relevant documents,this paper combines the contents of the documents to analyze the cases based on the principle of asset securitization and relevant theories and describes the background and reasons for the initiation of credit asset securitization business in LY Bank.And this paper analyzes the ideas of its business development,clarifies the basic process and compares the product types of credit asset securitization by holding the key points and summarizing the main risks,so as to put forward the following solutions: strengthening the decentralized management of the credit risk of the underlying assets,constantly enriching the variety of underlying assets,enhancing the management of interest rate risk,increasing the ability of credit rating,intensifying the supervision of credit rating agencies,improving the legal system,and upgrading the liquidity of the secondary market.Finally,the paper draws the following conclusions: first,the development of credit asset securitization is an inevitable choice for banks.Credit asset securitization enables banks to spread financial risks,improve liquidity,speed up the bank ’ s business innovation and enhance the competitiveness of the banking industry.Secondly,credit asset securitization has brought great benefits to banks while it also brought about a series of problems at the same time,including relevant laws and regulations to be improved,single structure of investors,inadequate capability of each participant in asset securitization,insufficient ability of risk management and so on.These are the problems that LY Bank needs to solve urgently in the process of credit asset securitization.