Research On The Risk Management Of Asset Securitization Business In China's Rural Commercial Banks

As the progress of China's interest rate liberalization has sped up,the financial market has become increasingly open and preferential policies for commercial banks have lessened,many problems have become more prominent,such as a shrinkage in interest margins,destabilization of saving deposits,and tightening of fluidity;as a result,financial pressure has become more and more severe.As a special group within China's commercial banks and a local financial institution,rural commercial banks are currently at the key point of strategic transformation.Following the urbanization development of rural areas,the market share originally possessed by rural commercial banks is being lost to entities such as government banks,share-holding banks,and even foreign banks as a result of their strategic planning as they have become more interested in the rural market.If rural commercial banks are to adapt to this change,they must adjust their business ideas to strengthen the competitiveness of their products and the ability to prevent risks.Under this general backdrop,developing asset securitization is advantageous for many aspects of rural commercial banks,including increasing the fluidity,changing the profit model,optimizing resource allocation,lowering financing costs and improving the capital adequacy level.However,within the process of the business operations of asset securitization,there are large numbers of participants,the machinations are complicated,and external financial environments can be constraining.This involves many types of risks,such as credit risks,operational risks,market risks and environmental risks;which have the characteristics of being diverse and complicated.For these reasons,risk management of the asset securitization in rural commercial banks is incredibly important.This thesis discusses the participating subjects through researching the risk management of X rural commercial bank's asset securitization as a case study,with the emphasis of how X rural commercial bank identifies and analyzes possible risks within each link during the process of asset securitization,and how they adopted management measures for risk prevention.Lastly,this thesis provides insights for the risk management for asset securitization businesses in rural commercial banks.Specific measures include perfecting judicial systems,setting up mechanisms for supervision and coordination,completing credit rating systems,regulating participant actions and promoting the development of information systems.