Research On Assets Securitization Of American Commercial Bank

Asset securitization is one of the most widely used financial innovation tools by many developed countries.However,for China,asset securitization is still in exploratory stage. In 2008, after the U.S. subprime mortgage crisis, the value of asset securitization is questioned and denied for it is considered as the root cause of the crisis.As a result, the development of securitization in China also died.This paper reviews the history of the U.S.subprime mortgage crisis,analyzes the reasons of the crises and tells the relationship between the asset securitization and subprime mortgage crisis,so as to prove that asset securitization is not the root cause of the crisis,instead, the U.S. subprime mortgage crisis was resulted from the regulatory system defects and lack of regulatory supervision.At the same time,the paper suggests Chinese banks should be more positive in the development of asset securitization through empirical and financial analysis.Asset securitization can contribute to the constraints of capital adequacy and deposit and lending ratio for Chinese banks.However,it is important for China to cultivate a good institutional,legal and transaction environment before developing asset securitization on a large scale,and learn from the lessons from U.S. subprime mortgage crisis such as the securitization structure design,risk control and supervision system.This paper consists of six parts.The fist chapter is an introduction,which mainly includes the backgroud and meanings of this research,the domestic and foreign research literature,the research methods and the main innovation and existing shortcomings;the second chapter introduces the theories of asset securitization,such as the definition,the basic process and principle,revenue and risk of securitizatoin products and so on, then tells why U.S. proceeds securitization and analyzes the direct motives for Citigroup's asset securitization with quantitative methods;Chapter three reviews the history of the U.S. subprime mortgage crisis,analyzes the causes of the crisis and the relationship between securitization and crisis;Chapter four explains the the actual state of securitization in China,the necessity of securitization for China,as well as the enlightenment from U.S.;Chapter five is the summary of this paper.