The Study About The Impacts Of Securitization Of Credit Assets On The Profitability Of Commercial Bank

As a financial instrument,securitization of credit assets originated from American real estate market in 1970 s.Compared to those in developed countries,assets banked security in China started relatively late and had experienced years of stagnation due to the financial crisis in 2008.But,with the implementation of relative policies in recent years,the asset securitization business entered the speedway.This article studies the domestic listed banks,employs comparative analysis,normative analysis,and empirical analysis,and explores the impacts of securitization of credit assets on the profitability of commercial bank.Firstly,this article briefly introduces the classification,the characteristics,the fundamentals,the principals,the participants and the operation procedures of securitizations credit assets.Then,the article discusses the effector mechanism of commercial bank which practices securitization of credit assets from the perspectives of motivation,macroeconomic impacts,and profitability analysis.Furthermore,the article introduces the development history,the status,and the issues that the securitization of credit assets faced in China.Lastly,the author selected 14 listed commercial banks,classified them into “small bank” or “large bank”,and applied empirical analysis to their annual data from 2012 to 2017.In conclusion,the securitization of credit assets has some impacts on the profitability of commercial banks.However,the impacts differentiated significantly among different commercial banks with different asset size.Specifically speaking,the securitization of credit assets has less influence on profitability of banks with large asset size but larger influence on that of banks with smaller asset size.Considering the current situation and problems,this article offers some solutions and suggestions in the end.