Research On The Impact Of Asset Securitization On The Profit Level Of China's Commercial Banks

In recent years,China's commercial banks have been experiencing weak economic growth.Some traditional conditions that can bring profits to banks can no longer create more profit points for banks.Since the launch of a new round of pilot projects in 2014,asset securitization has achieved remarkable results.After 2017,commercial banks have gradually adopted asset securitization to improve their profit performance.The question to be studied in this paper is:Can asset securitization improve the profitability of commercial banks?What are the main ways to reflect the effect of this promotion?This paper takes 30 commercial banks from 2014 to 2018 as the research sample,uses descriptive analysis and regression analysis to measure the profitability level,and integrates the three DuPont analysis factors of net profit rate,leverage rate and asset turnover rate into the comprehensive analysis of asset securitization counterparts.The specific impact of the profitability level of Industrial Bank and the specific impact path.The research shows that there is a certain relationship between the earnings level of banks and asset securitization,and the earnings level of commercial banks will be improved with the development of asset securitization activities.Based on the analysis of panel data of 30 banks,it is found that the results of full sample and sub-sample regression analysis show that the earnings level of commercial banks will be improved with the development of asset securitization activities.Asset securitization has a significant positive impact on the return on net assets of commercial banks at the significant level of 10%.According to DuPont's analysis idea,the regression models of net profit rate,leverage rate and asset turnover rate and asset securitization of commercial banks are constructed respectively.From the model analysis,it can be seen that asset securitization can significantly improve the asset turnover rate of commercial banks,but has no significant impact on the profit rate of commercial banks and the leverage rate of commercial banks.It shows that the effect of asset securitization on the profitability of commercial banks is mainly achieved by improving the capital turnover rate.Empirical analysis of the profitability of commercial banks in the asset securitization group shows that the degree of asset securitization has a significant positive impact on the profitability of commercial banks that have implemented asset securitization at the level of 1%.According to DuPont's analysis,asset securitization significantly improves the asset turnover and leverage ratio of commercial banks,but reduces the profit margin.According to the research results of this paper,the following three suggestions are put forward:1.Creating a suitable financial market environment to promote the issuance of asset securitization of commercial banks;2.Strengthening the role of asset securitization in improving the profit rate and asset turnover rate of commercial banks;3.Innovating the exchange market to promote the development of securitization from multiple perspectives.