Research On The Impact Of Credit Asset Securitization On The Liquidity Of Chinese Commercial Banks

Asset securitization is an important innovation of financial market,which was first produced in the United States in the 1970 s.It is an important tool in liquidity management.After the subprime crisis in 2008,the advantages and disadvantages of asset securitization became the focus of the financial market.With the policy encouragement,the scale of China's credit asset securitization market has been growing rapidly,innovative varieties have been emerging,and participating institutions have been enriched.After China enters the new normal stage,the economic growth slows down,and China's banking industry is faced with internal and external shocks,such as increasing loan-to-deposit ratio,serious maturity mismatch,and declining asset quality and other liquidity problems.At this time,how to improve the liquidity of credit assets has become the focus of the banking industry,an important way to solve this problem is the securitization of credit assets.Therefore,in the current economic reality of China,it is necessary to pay attention to the impact of securitization on the liquidity of commercial Banks,and study whether securitization can truly optimize the structure of assets and liabilities,improve the financing capacity of Banks and play an advantageous role,which is of great value to Banks,regulators and the national financial industry.Starting from the research background and significance of credit asset securitization affecting the liquidity of commercial Banks,this paper reviews relevant literature and introduces the theories,development process and current situation of asset securitization and the liquidity of commercial Banks.Then from the analysis on both sides of securitization influence mechanism of commercial Banks liquidity,and selected 78 commercial Banks issued asset-backed securities as sample,using the liquidity ratio and the deposit-loan ratio measure of liquidity,ratio of securitization of credit assets as the explained variable,build panel data model,regression test and heterogeneity test,study the influence of the securitization of bank liquidity,come to the conclusion and put forward policy Suggestions.In theory,this paper studies the advantages and disadvantages of credit asset securitization from both sides.From the perspective of securitization improving the liquidity of commercial Banks,firstly,securitization can improve the structure of assets and liabilities of commercial Banks,transfer the non-performing assets to the balance sheet,and improve the asset quality.Secondly,securitization can reduce the financing cost and expand the financing channels,so as to improve the market financing ability of Banks.Finally,by releasing regulatory capital,securitization builds a long-term platform to supplement capital,improve capital efficiency and supplement liquidity.From reducing the securitisation of Banks' liquidity,credit asset securitization caused by moral hazard and adverse selection,weaken the bank's risk control system,and lowered the bank profit ability to resist risk,excessive expansion of credit level,reduce liquidity buffers and increase the number of risky loans,and more prone to the problem of insufficient liquidity.In empirical aspect,mainly the following two conclusions: first,at present our country commercial bank credit assets securitization can improve bank liquidity,to some extent and degree of performance for the securitization of credit assets and bank liquidity ratios present positive correlation,and negatively correlated with commercial Banks loan-to-deposit ratios present relationship.This shows that the securitization of credit assets can optimize the asset-liability structure of Banks,reduce the proportion of Banks' long-term credit assets,solve the problem of maturity mismatch between deposits and loans,and increase liquidity.Therefore,the securitization of credit assets is an effective tool to improve the liquidity of commercial Banks.Second,both listed commercial Banks and unlisted commercial Banks can improve the liquidity of Banks to some extent by carrying out credit asset securitization business.Securitisation by big Banks is a better way to boost liquidity than by small and medium-sized Banks.Compared with urban commercial Banks and rural commercial Banks,the securitization business of state-owned large Banks and joint-stock Banks can improve the liquidity more.This shows that in the process of carrying out the securitization of credit assets,the local small and medium-sized Banks obtain the working capital for the long-term securitization of credit assets,and make excessive use of the obtained capital to conduct the investment business with greater risks,thus reducing the liquidity level.Finally,the paper puts forward the policy significance according to the research conclusion: first,continue to expand the pilot scale and scope,increase the strength of securitization of credit assets;Second,increase the participation of small and mediumsized Banks and improve the securitization structure of credit assets;Third,strengthen the supervision of credit asset securitization market to ensure healthy financial innovation;Fourth,we will promote the development of secondary markets and improve the liquidity of credit asset-backed securities.