Research On The Impact Of Credit Asset Securitization On The Safety,Liquidity And Profitability Of China's Commercial Banks

As China's Internet finance innovation quickens,interest rate marketization completes,financial disintermediation increases,and macro economy slips,commercial banks dominated the financial system have suffered great loss as its traditional business model which relies on loan-deposit interest margin has poor asset liquidity,excessive risks accumulation,and single capital revenue source.All those have contributed to the gradual weakening of commercial banks' competitiveness.However,the emergence of new financing instruments,credit asset securitization,can revitalize credit assets,transfer asset risks,and improve return on capital,providing an exciting opportunity for commercial banks to transform,develop and solve operational problems.Therefore,it is particularly important to study the impact of this business on the security,liquidity and profitability of commercial banks.This paper combines theoretical analysis and empirical analysis to study the impact of credit asset securitization on the security,liquidity and profitability of commercial banks.Firstly,the operation mechanism,operation process,operation mechanism,development history,development characteristic,development characteristics existing problems,potential risk are introduced.Then,it theoretically employs mathematical formula to derive the effect of credit asset securitization on the security,liquidity and profitability of commercial banks and analyzes its micro-effect such as capital replenishment,asset revitalization,risk diversification,cost saving and income increase;Finally,an empirical analysis was conducted.Specifically,a multiple regression model was established to examine the correlation between securitization ratio and indexes including capital adequacy ratio and provision-to-loan ratio,liquidity ratio and loan-to-deposit ratio,return on equity,which respectively represent the safety,liquidity and profitability of commercial banks.The powerful theories and empirical tests propping up this paper jointly beef up the persuasiveness of the research conclusion.The results show that the impact of credit asset securitization on the security,liquidity and profitability of commercial banks is positive:it can optimize the structure of assets and liabilities,access to liquid funds and non-interest income,and the then replenish their capital,increase the ability to resist risk;it can revitalize risk assets,reduce liquidity risk,and then improve asset liquidity;it can increase intermediate business income,expand the use of assets,and then increase earnings.This paper bases on theoretical and empirical analysis and combines national conditions to solve the problems in the development of credit asset securitization.It puts forward some countermeasures and suggestions from constructing top-level design,perfecting market construction and solving potential risks.It is hoped that China's credit asset securitization business will continue to prosper,which will in turn promote the transformation and development of commercial banks and bring new vitality to China's financial industry.