Author(s)

Haoyu Shi ¹

Affiliation(s)

¹ Gies College of Business, University of Illinois Urbana-Champaign, Champaign, Illinois, 61820, USA

Corresponding Author

Haoyu Shi

ABSTRACT

Securitization of credit assets of commercial banks is an innovative risk management model, and its risks mainly come from credit enhancement and insufficient liquidity. China is faced with various problems in the process of developing credit asset securitization. This paper systematically combs and analyzes the research theories in this field at home and abroad, and illustrates a series of difficulties and challenges in developing this business in China with examples. Finally, the paper puts forward relevant suggestions and countermeasures against these obstacles, studies the process of credit asset securitization of commercial banks, and investigates the securitization products. The survey results show that China's securitization products have a single structure, few types, simple design, and credit assets account for the main force, especially corporate bonds. Other products such as mortgage backed securities and re securitized products are relatively scarce, and the proportion of personal loan backed securities is also low. The single product and simple process will inevitably lead to risk concentration. The basic assets of asset securitization in China are mainly enterprise loans. Therefore, we should establish and improve the information disclosure system, strengthen regulatory legislation and professional personnel training to promote the healthy and orderly growth and development of the credit asset securitization market of commercial banks.

KEYWORDS

Commercial Banks, Credit Assets, Risk Management, Risk Characteristics

CITE THIS PAPER

Haoyu Shi, Risk Management and Risk Characteristics Analysis of Credit Asset Securitization in Commercial Banks. Financial Engineering and Risk Management (2022) Vol. 5: 82-88. DOI: http://dx.doi.org/10.23977/ferm.2022.050611.

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