Abstract:
As an emerging derivative, asset securitization has developed rapidly in recent
decades. Asset securitization has clearly become one of the most important
financial innovation tools in developed economies. With the outbreak of theglobal financial crisis in 2008, many experts and scholars at home and abroadbelieve that the excessive use of ABS tools is the root cause of the global financial
crisis. Credit asset securitization products can package the underlying assets andsell them to special purpose vehicles, thereby increasing the issuer's own liquidity. Through credit products, commercial banks can securitize assets such as loans that
are less liquid, and convert them into more liquid assets. Therefore, credit asset
securitization can improve the profitability of commercial banks. This researchmainly discusses the related issues of asset securitization of commercial banks inChina. This study used secondary data from seven commercial banks from2008to 2017 for quantitative research. Including the characteristics of the asset
securitization of China's seven major commercial banks, existing problems andthe impact of asset securitization on the operation of commercial banks inChina.Through empirical analysis, this paper mainly selects four independent
variables to study the impact of credit asset securitization business ontheprofitability of Chinese commercial banks, including capital adequacy ratio, non-performing loan ratio, loan to deposit ratio and profit rate. The final result
shows that asset securitization is negatively correlated with profitability of bank. Finally, last chapter puts forward some suggestions for the development of asset
securitization business of commercial banks in China.