An Empirical Study On The Impact Of Credit Asset Securitization On The Liquidity Risk Of China's Banks

Liquidity is one of the three principles of commercial bank operation management.Banks must maintain certain liquidity in order to ensure customer's demand for withdrawals.At present,China's banking industry is facing great liquidity problems.At the beginning of our financial system,indirect financing of commercial banks was the main financing channel.The financing channels of enterprises are mainly indirect financing of commercial banks.Therefore,China's commercial banks have undertaken too many credit tasks and risks,which lead to the liquidity problems such as the increase of the bank's deposit and loan ratio,the increase of non-performing loans,the mismatch of the term of deposit and loan and so on.On the other hand,China's commercial banks account for the overwhelming majority of passive liabilities.The proportion of active liabilities in the source of funds is still too low.Lack of effective policies and regulations,inadequate market depth and breadth results in lack of effective management tools in China's commercial banks and the ability to obtain funds is low.The phenomenon of money shortage in 2013 warns us: Strengthening liquidity management is particularly important for China's commercial banks.Potential liquidity risk in commercial banks is faced with a sudden increase in liquidity pressure which can lead to unpredictable consequences.Through restructuring,risk isolation and credit rating,credit asset securitization can enable commercial banks to convert poor liquidity into negotiable capital market securities at a lower cost.Therefore,securitization of credit assets brings new possibilities for banks to optimize the structure of assets and liabilities and solve the problem of non-performing loans.Since the securitization of credit assets in China started late,research papers related to asset securitization cannot appear in a short time without practice.Theoretical research on the internal mechanism of asset securitization is much more than empirical research.At the same time,there is little literature on how credit asset securitization affects the liquidity risk of commercial banks.Therefore,it is of theoretical and practical significance to study how credit asset securitization plays the role of liquidity risk in commercial banks from the theory of empirical research.The research content of this article mainly includes five parts: The first part mainly introduces the background,significance and content method of this study.From the two perspectives of the causes of liquidity risk and the impact of credit asset securitization on liquidity risk elaboration of relevant documents at home and abroad.Summary literature review and the innovation point of this article.The second part mainly introduces the basic theory of this article.Including domestic scholars,foreign scholars put forward on the causes of liquidity risk theory,theory and operation theory of Asset Securitization.On this basis,analyze the mechanism of credit asset securitization on liquidity risk.The third part we collate the relevant data of the deposit lending business and interbank lending business over the years.After describing the liquidity risk of commercial banks in China,then make a descriptive analysis on the development of asset business of listed commercial banks in China.The fourth part is the empirical analysis of credit asset securitization on liquidity risk of commercial banks in China.We use regression model to test the effect of credit asset securitization on liquidity risk.The fifth part makes a conclusion based on the results of theoretical analysis and empirical research.Put forward relevant suggestions,and point out the shortcomings of this article and the prospects for further research.This paper selects 13 listed banks in China as samples.We conducted an empirical study on the liquidity indicators and credit asset securitization related indicators from 2008 to 2017.The empirical results show that the development degree of credit asset securitization can reduce the liquidity risk of commercial banks,but it has different effects on different liquidity indicators;The regression effect of credit asset securitization scale and liquidity risk is not significant,The possible reason is that the securitization of China's credit assets started late,and the total base of the securitized products is not large,resulting in no obvious regression effect.Finally,this paper combines the research results with the development practice of China,and puts forward policy suggestions from the perspective of external supervision of credit assets securitization and internal risk management of banks:From the regulatory perspective,first of all,we should expand investor scope,cultivate investor quality and enhance the professionalism of credit rating agencies.Expand the scope of investors and encourage investors,such as insurance institutions,social security funds,and other investors to enter the market of credit asset securitization,so as to divert risk from the banking system;The fundamental way to reduce financial risks is to cultivate investors' quality and enhance investor's risk identification ability;We should enhance the professionalism of credit rating agencies,learn advanced and efficient credit rating technologies from abroad,and strengthen the construction of credit rating system.Secondly,we should promote the development of the capital market.The development of capital market can promote the competition of commercial banks and make commercial banks more proactive in raising their own profit level and risk management level.The maturity of capital market can promote the level of active debt management of commercial banks,and provide diversified and active debt instruments for banks to enhance their financing capability.From the bank itself,facing the deepening of the financial reform and the continuous change of the financial market,the commercial banks should strengthen their own risk management consciousness and take the initiative to control the liquidity risk.In addition,small and medium sized commercial banks have low risk resistance because of their size and financing capacity,and they urgently need a variety of active financing tools.Credit asset securitization can provide a decentralized way to promote the stable development of small and medium-sized banks.Credit asset securitization,as an innovative tool,is a double-edged sword.Commercial banks must pay attention to control and guard against risks when using this double-edged sword.It is necessary to improve the monitoring level and active management awareness of liquidity risk,and maximize the profit in the case of ensuring the security of capital flow.