The Impact Of Credit Asset Securitization On Bank Liquidity,Security And Profitability

In recent years,the development of China's banking industry is facing new challenges.On the one hand,the development of Internet finance has occupied a large amount of bank deposits,resulting in a tighter liquidity,in addition,the implementation of the structural reform of the supply side in China and The adjustment of Chinese enterprises' deleveraging and the domestic real estate market to the stock market,causing the rate of non-performing loans in China's commercial banks has risen significantly,and then it affects the commercial banks' liquidity;Another hand,In order to prevent the possible systemic financial risks,regulatary capital of China's commercial banks is more and more strictly regulated;And at the same times,the narrowing of the deposit spreads and the loan spreads also affect the profitability of commercial banks in a certain extent.At the same time,the reform of interest rate marketization,causing the interest rate of bank deposits is higher and the interest rate of loan is lower and the narrowing of the interest rate of deposit and loan have also challenged the traditional profit model of the bank to a certain extent,resulting in the decline of the bank's profit level.Against this background,regulatory authorities have issued multiple policies to encourage the development of China's asset securitization market.This paper is based on information asymmetry hypothesis,regulatory arbitrage hypothesis and risk reset hypothesis.Through reading and combing the literature research on asset securitization and bank liquidity,security and profitability.Firstly,analyzing the theoretical analysis of the impact of credit asset securitization on bank liquidity,security and profitability,from the impact of influence mechanism and mathematical model,and thought the perspective of Du Pont decomposition,we study the specific impact path of credit asset securitization on bank profitability.And based on theoretical analysis,hypotheses are put forward,based on the panel data of 16 listed banks in China from the fourth quarter of 2013 to the fourth quarter of 2017,using fixed effect regression model and GMM dynamic regression model,with the help of Eviews6 have empirical test,the results are showing that the activity of credit aiset securitization has a sleight positive impact on the bank's liquidity,security and profitability,and there is a lag effect on profitability.Also found a positive impact on the asset turnover rate and leverage ratio.At the same time,when the quality of basic assets is not differentiated,the securitization of credit assets also has a positive impact on bank profitability.Further,in the specific path affecting profitability,credit asset securitization has the greatest impact on the turnover rate,followed by the equity multiplier,and the last is the profit margin.In order to improve the research framework of this article and study the impact of the securitization of NPL on the bank's profit rate,a case study on the securitization of nonperforming assets of China Merchants Bank is carried out in this paper,the results show that the securitization of non-performing assets has a negative impact on bank profitability.The above results show that credit asset securitization has a positive impact on bank liquidity,security and profitability.China should actively promote the development of credit asset securitization market,not only meet the needs of China's financial innovation,but also guarantee no systemic financial risk.Therefore,this paper proposes the following policy suggestions from the specific operation process and prudent supervision:(1)Banks and other intermediaries implement more mature operations,build diversified basic assets,strengthen professional operation of rating agencies,and build a more reasonable pricing mechanism.(2)The authority of regulation should pay more attention to the supervision,including building a more stricter information disclosure system,and the establishment of macro Prudential and micro prudential regulatory framework.