Research On The Influence Of Credit Asset Securitization On The Stability Of China’s Commercial Banks

Under the background of interest rate liberalization reform and bank interest margin narrowing at the present stage,securitization of credit assets has become an important tool of new financing and a key way for Chinese commercial banks to change the traditional financing form.In recent years,driven by premier Li Keqiang’s idea of "revitalizing the stock and making good use of the increment",China’s credit asset securitization(ABS)business has been booming.The development of China’s ABS business will have a certain impact on the stability of China’s commercial banks,and to clarify the impact of the development of securitization business on the stability of commercial banks and the specific impact path is of great significance to maintain the smooth operation of the financial market.Based on the two basic functions of credit asset securitization--liquidity effect and risk transfer,this paper discusses the influence of ABS on bank stability and its ways of action.Firstly,the literature on credit asset securitization,bank stability and the relationship between the two are reviewed.Secondly,the empirical analysis is made on the annual data of all 85 commercial banks that have carried out this business at least once during the period from 2014 to 2020 when credit asset securitization business was on the right track.The intermediate effect of securitization on bank stability is tested from liquidity effect and risk transfer.Finally,the paper discusses the influence of different types of commercial banks engaged in credit asset securitization business on stability,Thus drawing the following conclusions:First,at present,the securitization of credit assets enhances the stability of banks to some extent.The higher the degree of securitization of bank credit assets,the stronger the stability of banks.Second,the path of credit asset securitization to improve bank stability is reflected in the effective improvement of liquidity and risk transfer;Thirdly,the securitization of credit assets has a significant positive impact on the stability of banks of different nature,and has a significant positive impact on joint-stock banks and urban commercial banks,but has no significant impact on large state-owned banks and rural commercial banks.Based on the research conclusions of this paper,the following suggestions are put forward:deepen the understanding and application of credit asset securitization in banks;Banks should carry out credit asset securitization based on function orientation.Put an end to the implicit guarantee of banks to ensure the effectiveness of trust behavior;The regulatory authorities shall strengthen the management of information disclosure of credit asset securitization;Banks should focus on training professional personnel.