Research On The Influence Of Securitization Of Credit Assets On Profitability Of Commercial Banks

Commercial Banks play a leading role in the whole financial system of China and play an important role in the development of the real economy.From 2005 to 2008,China's asset securitization initially developed,and the global financial crisis broke out in 2008.The false prosperity of asset securitization and the disactualization of financial economy are the main reasons for the outbreak of the crisis.In order to stabilize the development of China's economy,reduce the impact of the financial crisis on China and reduce the systemic risk,we decided to suspend the asset securitization business.In 2012,China decided to restart and gradually open up the financial market,which led to the slow development of asset securitization business.In recent years,along with the advancement of marketization of interest rate makes the traditional commercial bank to spreads affected,as a source of income of commercial Banks profit sources,the causes of interest rate marketization is the commercial bank asset securitization,asset securitization is considered in the best way to improve commercial Banks under the new economic profit.In the process of credit,commercial Banks have serious maturity mismatch problem,which reduces the liquidity of their assets and increases the risks faced by commercial Banks.Asset securitization reorganizes and sells the assets with poor liquidity and stable income,and turns them into assets with strong liquidity,and gains profits by selling financial assets.In the process of securitization of credit assets,commercial Banks charge different management fees through playing different roles,and the funds obtained from selling financial assets can be reinvested to obtain additional income,which improves the profitability of commercial Banks and promotes the operation and development of commercial Banks.In 2018,the issue of China's asset securitization market scale has reached 2 trillion yuan,and is a new type of underlying assets are released and active asset securitization market,the market players continue to increase,investors also increased its investment scope,securitization of credit assets to satisfy its demand for risk,also meet the requirement for income,to further promote the development of credit asset securitization market.This paper consists of five chapters.The first chapter introduces the overall situation of the paper,including the research background and significance,content and framework,domestic and foreign references,innovation and deficiencies.The second chapter firstly analyzes the development process of asset securitization,and then analyzes the current situation of asset securitization from the scale and interest rate of asset securitization.The third chapter analyzes the impact of credit asset securitization on the profitability of commercial Banks.Firstly,it studies the principle of asset securitization,and secondly,it analyzes the impact of asset securitization on the profitability of commercial Banks.Chapter iv is the empirical analysis of this paper.Quarterly data of commercial Banks from 2014 to 2018 are collected,and Hausman test and F test are used to compare fixed effect model,random effect model and mixed effect model.Finally,the regression model is determined for empirical analysis,Firstly,the paper analyzes the impact of credit asset securitization on commercial Banks' profitability under the total sample,and then analyzes the specific path of the impact of credit asset securitization on commercial Banks' profitability under the total sample.Secondly,the paper classifies the underlying assets into residential mortgage securitization and non-residential mortgage securitization on commercial Banks'profitability.Under the second sample,the types of commercial Banks are classified.Different types of commercial Banks' credit asset securitization have institutional heterogeneity on the profitability of Banks.The fifth chapter is the conclusion and suggestion.Firstly,the securitization of credit assets plays a positive role in the profitability of commercial Banks.Secondly,the profitability of non-residential mortgage securitization to commercial Banks is significantly positive,while the profitability of residential mortgage securitization to commercial Banks is positive,but not significant.On the other hand,large state-owned commercial bank asset securitization impact on commercial Banks'profitability than joint-stock commercial bank asset securitization of commercial bank profitability influence,finally put forward some proposals for improving asset securitization market,first of all,in the process of the issue of asset securitization,the underlying asset pricing is the key,the right of asset pricing,on the one hand,to commercial Banks benefits,improve profitability,meet the needs of investors,on the other hand,too high or too low pricing will be harmful to the development of asset securitization.Secondly,only by expanding the market scale can the long-term development of asset securitization be guaranteed.Only by expanding the market scale and increasing participants can the supply and demand of the market be satisfied and the stability of asset securitization be guaranteed.Credit enhancement and product rating in the process of asset securitization guarantee the smooth issuance and sales of asset securitization.In addition,only by enriching the types of underlying assets of credit asset securitization can different preference investors be satisfied.The government should also provide a good macro environment in the asset securitization market and actively introduce a series of laws and regulations to ensure that the asset securitization market moves in the right direction.