The Study About The Influences Of Asset-backed Securitization Of Chinese Commercial Banks

Asset-backed securitization is a new derivative,developing very rapidly in decades.In developed economies,asset-backed securitization has becoming one of the most important financial innovation tool.With the explosion of the subprime crisis in 2008,more and more scholars began to think about the relationship between the usage of asset-backed securitization and the development of the global economy.Many experts and scholars think that one of the causes of the subprime crisis is the abuse of asset-backed securitization.Therefore,asset-backed securitization entered a long period of stagnation.The annual circulation of asset-backed securitization in the United States hasn’t recovered to the level before the crisis by now.However,asset-backed securitization market in recovering,and the entire industry has learned a lot from the crisis,beginning to pay more attention to how to develop asset-backed securitization healthily.Asset securitization started to launched in Chinese market officially in 2005.In the early period,the main issuers are commercial Banks.Before the explosion of the subprime crisis in 2008,the development of asset-backed securitization in our country was very slowly.After the outbreak of the subprime crisis,the Chinese government suspended the asset-backed securitization to safeguard the stability of the financial market in China,and reduce the impact of financial crisis on our economy.Until 2012,the government began to resume the development of asset-backed securitization business in China.Asset-backed securitization can restructure the underlying assets,and sell them to special purpose vehicle.That can enhance the liquidity of commercial banks.The term structure of loan and deposit is unreasonable of commercial banks.Through asset-backed securitization,commercial Banks can lower its loan,transferring it into high liquidity asset.Commercial Banks can also charge management fees in the process of securitization.The income of selling the underlying asset can also be reinvested.As a result,asset-backed securitization can improve the profitability of commercial banks.This article mainly analyzes the condition of asset-backed securitization in China.Including the characteristics of ABS of commercial bank of in China,the problems and the influences of ABS to the management of Chinese commercial bank.This article also studys the relationship between the ABS and the management of Chinese commercial banks by empirical analysis.Moreover,this article also analyzes the condition after the recovery of ABS in China.Finally,the article puts forward the suggestions of how to develop ABS in China appropriately.