The Influences Of Credit Risk Transfer To Bank Stability

A large proportion of credit risk in commercial bank risk, traditional bank credit assets can only be held to maturity or until the loan default, credit risk is difficult to disperse and effective control, bank credit risk management ability is weak. In recent years, actively explore the transformation of banking credit risk, creating a lot of credit risk transfer tools, these tools have allowed banks to transfer out do not want to bear the credit risk according to the needs of their risk management, to resolve the problem of high rate of non-performing loans, the realization of credit risk management initiative and flexibility, so the credit risk transfer the market has been the rapid development. However, the subprime mortgage crisis led to a large number of bank failures that credit risk transfer tools in brings a series of benefits at the same time to the bank to bank’s steady development has brought many negative effects. Although a variety of credit risk transfer bank can be dispersed and hedge credit risk, ease capital constraints, improve the liquidity of credit assets, is conducive to the stable development of banks, but the lower risk, improve the capital adequacy ratio, liquidity increases may change the management behavior and the risk appetite of banks in order to reduce the bank’s stability, therefore, credit risk transfer is a double-edged sword, the influence on the stability of commercial banks with uncertainty. This paper first analysis of credit risk transfer tools affect the stability of the bank through which the main channel, modeling analysis of influence of second improve the transfer market efficiency of credit risk from market participants in the game’s angle on the stability of commercial bank, at last using after the bank behavior and stability changes occur American credit derivatives market panel data empirical test of credit risk transfer market, the research of the uncertainty to obtain certain result.By means of credit risk transfer market impact on bank stability of the main channel, and the channel on the analysis of how to influence the stability of the bank, in this paper, it is concluded that the bank mainly through diversification, hedge channels, increased liquidity, capital slow channels and incentives to influence the stability of the bank, including incentive channel is a negative influence on the stability of the Banks, other channels have a positive impact on the stability of the bank, so the effect of credit risk transfer market on bank stability depends on the bank to use through the channels to the total effect of credit risk transfer tools; Before and after the credit risk transfer market through Banks, businesses, investors and other financial institutions are out of self-interest maximization game modeling analysis by credit risk transfer market efficiency is beneficial to the stability of the bank, and bank credit risk transfer to the non-bank financial institutions than transfer to other bank is more beneficial to the improvement of the stability of the Banks themselves; Using the credit derivatives market panel data, the results of empirical study is made on the credit risk transfer deal size enlargement leads to Banks to take on more risk, a significant reduction in bank credit audit supervision power and the credit risk of the bank to bank earnings and the effect on the stability of the bank are not significant.