Research On The Motivations And Risk Implications Of Commercial Banks' Credit Asset Securitization

After a pause in the securitization of domestic credit assets due to the 2008 financial crisis,financial institutions and regulators learned from the experience and restarted the securitization business in 2012.This business provides a new financing channel for commercial banks and has a good boost to their operations.However,the development of China's credit asset securitization is still in its infancy.In this process,there are many problems,such as a small market size,a single investment structure,a lack of basic asset types,a lack of professionalism in the credit rating system,and incomplete relevant legal systems.Therefore,this paper analyzes the motivation and risk impact of China's commercial bank credit asset securitization.At the end of 2014,China's asset securitization business supervision took an important turn.The past approval system changed to the filing system.Therefore,it is necessary to consider the influence of policy factors when analyzing the motivation of securitization.First,on the basis of the existing motivation theory and the status of China's credit asset securitization,a theoretical hypothesis about the motivation of China's bank securitization is proposed.Secondly,taking 2012-2018 as the time interval,it is divided into the normal development stage(2012-2014)and the rapid development stage(2015-2018),and 54 banks that have issued securitized products in this interval are selected to explore the motivations of banks'securitization in two stages.The empirical results show that in the normal development stage,improving profitability,regulatory capital arbitrage,and innovation-driven driving are the main drivers for banks to securitize credit assets;in the rapid development stage,obtaining liquidity is the main driver for banks to securitize.After the motivation analysis,this paper turns to analyze the influence effects of the credit assets securitization.Since in the motivation analysis,the profitability and liquidity of the "three principles" in bank operation have been empirically tested,this paper continues to build a model to explore the relationship between the credit assets securitization and commercial bank security(risks).In addition,the empirical result indicates that if banks carry out securitization business,it will be conducive to reducing the overall risks and alleviating the risk problems faced by banks.Additionally,the higher the capital adequacy ratios and the larger the asset sizes,the stronger the bank robustness.In this paper,the time dummy variable is set up to verify whether the "filing system" will have policy-driven effects.The result shows that the record keeping system doesn't promote the risk reduction of securitization and that the loose regulatory environment has reduced the vigilance of banks against their own risks.Finally,combined with the current situation of banks' credit asset securitization and empirical conclusions,this article puts forward some suggestions.First of all,commercial banks should pay attention to the standardized and transparent principles in the securitization product transactions,while actively carrying out the securitization business to meet the business requirements.Secondly,the regulatory authorities should continuously improve the regulatory indicators,and introduce targeted laws and regulations as well as formulate a strict information disclosure system.In addition,institutional and individual investors should be vigilant and avoid the haphazard investment,so as to avoid the situations of maliciously raising the price of the credit assets securitization products.