Empirical Study On The Correlation Between Asset-Backed Securitization And Financial Stability

As an important innovative product in the modern financial system,asset securitization has not only enriched the traditional financial market,but also developed into an indispensable part of modern finance.The development of asset securitization is closely related to the stability of the national economy.Throughout the development process of asset securitization in the United States in developed countries,in the 1960 s,due to the serious storage and loan crisis,the government opened the model of credit asset securitization in the context of special national conditions.After more than 20 years of growth and development,the US government realized that the legal supervision system was not perfect and formally introduced asset securitization in taxation and securities in 1984.Laws and regulations,the development of asset securitization makes the uncertainty of financial stability gradually increase,resulting in the outbreak of the subprime mortgage crisis in 2007,and then a global financial crisis.The United States began to reflect on and adjust the supervision of the development of domestic asset securitization.The course of asset securitization in China began relatively late,and only in the 1990 s did there be related financing activities.In 2005,the relevant government departments in China developed a set of perfect supervision and management laws and began to try out asset securitization at a fixed point.After that,the development was affected by the subprime mortgage crisis in the United States for several years,but with the vigorous development of domestic macro-economy,China's asset securitization market The rapid development of PPP project asset securitization in recent years has attracted the attention of scholars to the healthy development of asset securitization in China.Therefore,it is of great practical significance to deeply analyze the relationship and influence path between asset securitization and financial stability in order to maintain the healthy development of China's economy.By combing the literature at home and abroad,this paper compares two commonly used financial stability measurement methods,and by analyzing the impact of asset securitization on financial stability,based on the annual data from 1998 to 2017 in China,selects out the financial development.There are 13 basic variables in three aspects of financial fragility and macroeconomic stability.Based on the principal component analysis method,the corresponding weights of these 13 basic variables are assigned to these 13 basic variables,and the basic variables are synthesized into the financial development index FDI,by using the calculated factor coefficients.The financial vulnerability index FVI and the macroeconomic soundness index MESI,use these three first-level indicators as agents of financial stability.Quantity.At the same time,the ratio of the market value of the domestic securities market to the gross national product(GDP)and the securities rate X are used to illustrate the degree of asset securitization in China.The financial development index FDI,financial vulnerability index FVI,macroeconomic soundness index MESI and the securities rate X are taken as the four independent variables of the structural vector autoregression model,and the effects of the same period of correlation between the economic variables are considered.According to the basic theory of economics and the interaction between asset securitization and financial stability,six economic constraints are set up,and the structural vector autoregression(SVAR)model,the parameters of the model are estimated by the ordinary least square method,and the dynamic relationship between the variables is analyzed by impulse response function and variance decomposition.The empirical results show that asset securitization is the Granger causality of financial development,financial fragility and macroeconomic soundness.At the same time,the results of impulse response function and variance decomposition show that in different stages of asset securitization development,financial development.Financial fragility and macroeconomic soundness have different effects on them.During the preparation period of asset securitization,the securities rate is very sensitive to the changes of financial development index,financial vulnerability index and macroeconomic soundness index.The positive impact of the standard units of the three financial stability indicators can have a significant impact on the degree of asset securitization,but this impact is short-term.When the asset securitization market has a certain scale The impact of asset securitization on financial development,financial fragility and macroeconomic soundness is long-term and stable.Asset securitization can promote economic growth and financial system stability in many ways,and financial stability can also promote the rational development of asset securitization.In the degree of influence on asset securitization,macroeconomic soundness index is the dominant factor,and the force of financial development index is good in the mature asset securitization market.However,the degree of financial vulnerability in mature markets does not dominate the degree of asset securitization activities.In different economic backgrounds and stages of financial market development,the deepening degree of asset securitization and financial vulnerability affect each other.The higher the degree of development of asset securitization,the greater the scale,the higher the potential risk to the financial market.The degree of financial vulnerability will also change accordingly.Through literature analysis,theoretical research and empirical research,this paper puts forward some suggestions for the future development of asset securitization in China,such as strengthening credit risk management,perfecting credit rating system and financing system of asset securitization in China.To study and establish a fair and fair standard applicable to the market of our country,the products of asset securitization should be constantly innovated and the diversity of the market should be increased to share market risks.