The Impact Of Credit Asset Securitization On The Stability Of Commercial Banks In China

China's credit assets securitization business was launched on a pilot basis in 2005,suspended during the financial crisis.It was not until 2012 that securitization was restarted.With the continuous deepening of financial supply-side structural reform,banking financial institutions urgently need to revitalize the stock,optimize resource allocation and serve the real economy with higher efficiency.As an important financial innovation tool,credit asset securitization has greatly promoted the stable development of the banking industry in developed countries by improving the liquidity,expanding financing sources and effectively transferring credit risks.Therefore,the Chinese regulatory authorities also attach great importance to the use of this tool.With the gradual release of positive signals for the securitization,the credit asset securitization business has shown rapidly.However,the financial crisis in 2008 revealed that this instrument could have a negative impact on the stability of Banks.As a result,the academic community has re-examined the tool and two viewpoints of "securitization-stability" and "securitization-instability" have been formed.In this context,this paper is based on the development of credit asset securitization in China,attempting to explore the influence of securitization on the stability of China's commercial Banks.First of all,the paper expounds the relevant theoretical basis of credit asset securitization and bank stability,and summarizes the possible impact of the business on bank stability through literature review.Secondly,combined with the practice of China's credit asset securitization and the actual needs of commercial banks to carry out the business,the paper analyzes the impact of securitization on the stability of commercial banks.After the theoretical analysis,this paper uses the data of 15 listed Banks that actively carried out credit asset securitization business from 2012 to the third quarter of 2018 to conduct an empirical test.The bank's stability is measured basing on the perspective of risk-taking and liquidity.In this paper,Z index,which measures the risk level of Banks,is used to measure the stability of Banks.At the same time,bank liquidity is included in the scope of stability.Therefore,the ratio of current assets is taken as another indicator.Then,the panel model is constructed to test the effect of credit asset securitization on bank stability.This paper deems that credit asset securitization has a positive impact on the stability of Chinese commercial banks.On the one hand,the credit asset securitization business can positively affect the Z indicator by effectively reducing the leverage ratio of the bank and reducing the fluctuation level of the asset return rate,thereby reducing the bank's risk-taking level and improving the stability of the bank.On the other hand,credit asset securitization significantly improves asset liquidity by converting non-current assets into liquid securities,which in turn helps banks revitalize stocks and inject vitality into their own stable operations.Finally,based on the research results,the paper puts forward suggestions for banks to strengthen business supervision,enrich basic asset types and improve information disclosure system.In the future,the relationship between supervision and innovation should be well coordinated so that credit asset securitization can play a positive role.The paper makes contributions on: First,based on the specific development of China's commercial banks,it clarifies the needs of banks to promote credit asset securitization.Second,this paper selects the latest practical data of credit asset securitization in China to conduct empirical tests and explore the influence of business on bank stability.The shortcoming of this paper is that the business is still in the early stage of development in China,and the overall volume of stocks is limited.At present,the major issuers are still dominated by large state-owned banks and some joint-stock banks.Therefore,the data sample selection in this paper may not be comprehensive enough.