The Influence Of Asset Securitization On The Profitability Of Chinese Listed Commercial Banks

In recent years,Chinese commercial banks have gradually fallen into the profit dilemma.They should not only deal with the rising financing costs,but also deal with the defects of the traditional revenue model.Analysis of domestic and foreign practical experience,the development of asset securitization is conducive to promoting the healthy development of domestic Banks.At present,asset securitization has developed to a high level in countries with relatively developed financial markets,including the United States,and has penetrated into all branches of financial enterprises.Asset securitization plays a very important role in the financial market of various countries,because it helps to improve the profitability of Banks.On the one hand,through asset securitization,commercial banks can transform basic assets with weak liquidity into assets with strong liquidity,and collect management fees from them.On the other hand,the money from the sale of the underlying assets can be reinvested to make a profit.But asset securitization in our country as the market is imperfect,lack of experience starting late,needs to improve supervision,the development has been relatively slow,and once after the financial crisis in 2008 to a standstill,restart related business until 2012,so the asset securitization in our country has its own characteristics,then the current our countrycommercial bank to carry out the asset securitization to its profitability will produce what kind of influence,and by what path became the research content of this article.On the basis of reading relevant literature,this paper defines asset securitization,expounds its principles,and summarizes the research results of domestic and foreign scholars from the two dimensions of asset securitization's impact on the operation of commercial banks and the profitability of commercial banks.Combined with Chinese national conditions,this paper analyzes the development of domestic asset securitization business.Next,in the part of theoretical analysis,it is pointed out that asset securitization will improve the profitability of Banks in three aspects: regulatory capital arbitrage,reduction of financing costs and provision of new profit growth points,so as to improve the turnover of net assets by improving Banks' profit rate,total asset turnover rate and equity multiplier.Combined with theoretical analysis,this paper assumes that asset securitization will improve the profitability of Chinese commercial banks.In order to verify this hypothesis,this paper selects the operation data of 16 listed commercial banks in China from the first quarter of 2014 to the third quarter of 2018,and uses Stata13 software to analyze this part of panel data.This study confirmed that the development of asset securitization business will negatively affect the profitability of commercial banks.Based on this use of Dupont analysis to further deepen the research,the study found: asset securitization has a negative effect on our country commercial bank profit margins,has a positive effect on total asset turnover and the rights and interests multiplier,this paper analyzes the reason may lead to the results of five: the lack of market experience,perfect business development mechanism has not been formed,the basis of high quality assets,failed to reach a scale effect,circulation market is less developed.To further verify the applicability of the empirical results,with China merchants bank as the specific case,this paper introduces the development process of asset securitization and the characteristic,select it in the first quarter of 2014 to 2018 in thethird quarter of business data,using Eviews10 software time series regression analysis,the results showed that the development of asset securitization negative influence China merchants bank profitability.Finally,the paper summarizes the research results and puts forward some Suggestions for the development of asset securitization in Chinese commercial banks.