Research On The Impact Of Credit Securitization On The Operating Performance Of Commercial Banks In China

Credit asset securitization is the packaging and restructuring of credit assets with stable future cash flows by banking financial institutions,which are structured and stratified for sale to investors with corresponding risk tolerance.The originator obtains capital financing with its own assets and the investor obtains wealth appreciation with its capital.By the end of 2020,credit asset securitization has financed commercial banks and revitalized assets of about RMB 3.6 trillion,which is of great significance to the development of direct financing in China’s banking industry.In this paper,the impact of credit asset securitization on the operating performance of commercial banks is studied,and the data of 32 commercial banks in China issuing credit asset securitization from 2015 to 2020 are used as the research sample for benchmark regression analysis in terms of safety indicators,liquidity indicators and efficiency indicators,and the full sample is also divided into two groups of underlying asset type and accounting out of the table by combining the characteristics of securitization in China’s credit market Further analysis was conducted.Theoretical and empirical analyses show that securitization of credit assets is beneficial to banks’liquidity and detrimental to their safety and efficiency.Securitization of different underlying asset types affects bank performance differently,with securitization of individual home mortgage loans helping to reduce bank risk,while securitization of corporate and non-performing loans raises bank risk.Most of the current securitizations of individual home mortgages and corporate loans are not true sales and therefore reduce bank liquidity,while securitizations of non-performing loans out of the table enhance bank liquidity.Securitization of nonperforming loans has a negative impact on banks’ efficiency,while securitization of other types of assets does not have a significant impact on banks’ efficiency.The analysis of the impact of accounting for credit asset securitization out of the table found that out of the table has a negative impact on the bank’s effectiveness.