The Research On Supervision Of Asset Securitization In The New Basel Capital Accord

Asset Securitization is expected to be a portfolio made of a series of steady cash flow, but the lack mobile assets , adoption of certain credit enhancements to improve credit quality. The portfolio of assets include the expected cash flow benefits from changes in the financial markets for mobile technology and the process of debt-bonds . Asset Securitization is on the international arena since the 1970's, one of the most successful innovations in the financial sector. 2004 Basel Committee on Banking Supervision and Management Commission issued the latest Basel Capital Accord. This new accord reflects the recent changes in international financial markets in twenty years, as the authority of the international regulatory standards this change is also reflected by the formulation, particularly in equity securities regulation, from the previous edition for the future, the new version of a separate chapter, the Commission shows the importance of asset securitization risk. In comparison with foreign countries, China has a very short time to develop the securities, or securities of a new regulatory issue. Detailed study of the Basel framework on asset securitization, risk supervision and learn from the latest version, for building of China's own regulatory framework this is of great significance.First we talk about the significance of this study and the current status in China and abroad, illustrate the basic profiles of asset securitization, including the concept , category , structure. Second we analysis of the financial institutions in the securitization process may face the risks and the adoption of specific examples to illustrate the potential risks of asset securitization .By inspecting the evolution of asset securitization framework under the new Basel Capital Accord, includes the idea about supervision and control in the new agreement, we research the three pillars under the new agreement provides the framework for the securities of the content, focused on analysis of the first pillar under the Securities Act and the standard rating and the internal rating, In determining asset securitization exposure shows the regulatory capital requirements, the securities must be "economic substance " as the basis. Supervision departments should go beyond the framework of law and accounting may provide real concern the hidden support In light of these supports for retaining welfare and hold the corresponding capital. we analysis of the current structure of asset securitization features and the current regulatory approach in China, By comparing "financial institutions in supervising and managing the pilot securitization of credit assets" and the Basel Capital Accord ,other regulations , conclude that the capital of China's securities regulatory standards, the gap with foreign regulatory philosophy. China's asset securitization framework should be raised from special legislation, departmental rules, standardized documents and the establishment of four levels of discipline document. Asset Securitization at all levels should focus on the "economic substance" and that "really do risk isolation. Who should bear the risk in the end, "to institutionalize our asset securitization to solve the existing problems; to improve the legal environment, the credit environment, the tax environment, the accounting environment, regulatory capital standards to gradually narrow the gap with the Basel Capital Accord. This paper presents the application of international financial incentive concept of securitization regulation. We analysis of the Necessity for and feasibility, and try to focus on the above observations ,raise some policy proposals pointed out the direction of future development.We expect this paper, for the capital of China's assets securities regulatory, which may reduce risks to the financial system and to promote rapid and healthy development and give some meaningful lessons.