Research On The Influence Of Credit Asset Securitization On The Liquidity Of Commercial Banks

The steady operation of commercial banks is the key to the steady development of China’s financial market,and capital liquidity is also one of the most key factors to determine the steady operation of commercial banks.Credit asset securitization,as one of the most valued financial innovative products in recent years,was originally designed to reduce the liquidity pressure of commercial banks and obtain profits at the same time.There are many participating institutions and complex business links.Therefore,the impact mechanism and final effect of credit asset securitization on the liquidity of commercial banks,It is very noteworthy.Firstly,this paper analyzes the effect of credit asset securitization on the liquidity of commercial banks,including positive and negative aspects.Secondly,it introduces the current situation of liquidity and credit asset securitization of Chinese commercial banks and development trend of credit asset securitization in China.By selecting sample data for empirical data analysis,and selecting credit asset securitization rate as the explanatory variable,liquidity ratio as the explanatory variable,and equity multiplier,commercial bank scale as the control variables.The data were analyzed by correlation test and other methods;Then,ridge regression is used for statistical analysis to determine the relationship between explanatory variables and explained variables.Finally,the stability of the model is tested.By selecting the liquidity coverage ratio as the alternative explanatory variable,the regression analysis is carried out again.The analysis conclusions are consistent,which proves the reliability of the model.The empirical results show that credit asset securitization has a negative correlation with the liquidity ratio,and credit asset securitization has no effect on the liquidity of commercial banks.Finally,according to the research conclusions,four suggestions are put forward:first,regulators should further improve business information disclosure;second,avoid excessive concentration of basic assets and comprehensively develop different types of credit asset securitization;third,improve the construction of secondary market system of credit asset securitization;fourth,commercial banks should appropriately reduce high-risk loans and improve liquidity cache.