Securitization Researching And The Prevention Of Risk

The twentieth century asset securitization is one of the most important financial innovation, securitization can make assets flow up, make assets become could be traded, enrich investment products, expand the size of the capital market, provide the risk transfer tools and assets and liabilities management tools for Banks and other financial institutions, improve the financial market efficiency.However, securitization also may change each of the participating subject incentive mechanism and the information structure from the microscopic, and influence monetary policy transmission and produce systemic risk on the macro, these changes are likely to produce the bad consequence, The U.S. subprime mortgage crisis is so. This article research the risks of asset securitization from the view of the macro and micro. And through the refining of the risks of the asset securitization, provide advice for how two prevent the risk of asset securitization. The basic conclusions are as follows:First, from the microscopic asset securitization change participation body incentive mechanism. This paper mainly use game theory model from the view of asset securitization participating body commercial bank, and analysis in asset-backed securities after the commercial banks have credit review incentive system is how to from the traditional "launch-hold" mode to "launch-sales" mode conversion. After securitization technologies generate, the bank’s business model had a great change, it could start lending, and then selling them to SPV to withdraw funds.While selling loans it transfer out the credit risk, at last formed the so-called "launch-sales" loan business model. Through the securitization processing, loan no longer appear on balance sheets, and the sponsor no longer bear the risk if the borrower has the liability to repay the loans. Two kinds major differences of loan business model is in the reviewing incentive of bank loan changed, in knowing their loans could be sold, the bank not only has the power to screen the borrowers, even, in order to earn income, seizes the market, give credit to borrowers with bad loans.The second, asset securitization influence monetary policy and systemic risk on macroscopic. Through studies of securitization of bank loan how to influence found asset securitization. This article find:credit creation function weakening the monetary policy effects, when the central bank take expansion policy, asset securitization may make credit expansion excessive, beyond the expected of policy makers; When central Banks us tightening policy, asset securitization still can expand the credit, make the central bank can not reach the expected goal. In addition, because of the great weakening of the monetary policy transmission effect, through the bank’s balance sheet, it increases in interest rates of the impact of vibration, and thus led to lower rates of flexibility. Second, because asset securitization and its chain stretched, it is easily to cause the lack of information and opaque, make the whole financial system complicated, it not only gave birth to the large number of intermediary institutions and profit model of generation, and gave birth to the huge short-term debt markets. Obviously, the production of asset securitization in macro economic produce of the risk is not allow to be ignored.Third, according to the risk of securitization in macro and micro economic, the author thinks that regulators should make a series of reforming. First we must increase trade information especially asset pool loans composition and the condition of the charge interest and increase business bank off-balance-sheet information disclosure according to the actual situation. In the product detail design, for the issuer of the product also issued to the issuer keep the interests of the part to prevent commercial bank in asset-backed securities to be relax during the audit qualification examination people relax. In the macro level, because the securitization of credit assets creating function weakening the monetary policy affection, so in the implementation of asset securitization with market we must combined with a reform of the interest rate. According to the processing of first loan, continue to gradually lifted after deposit, steadily establish loan rate control of the established path at the same time, improve and refine the implement the roadmap. While encouraging commercial bank comprehensive management and create a good market environment, promoting the commercial banks to speed up the development of transformation. At the same time, strengthen the power of participation body. Securitization process involves a lot of participation main body, such as:investment banking, accounting firm, law firms, guarantee agencies, enhancement rating agencies, and so on. They not only ensure the fluency of the securitization process operation, and makes the sponsors, investment institutions interests are not lost.