Abstract:

In the context of the report of the Nineteenth National Congress of the Communist Party of China on building a modern economic system and the State Council's policy of "revitalizing stocks", we review the domestic and international asset securitization motivation research, and propose the theoretic motivation hypothesis which involves increase  profitability improvement, risk management needs, and regulatory capital arbitrage. Using the 2011-2017 of 56 domestic banks which conform to be  industry standards and targeting 56 full-sample banks and 13 listed banks separately, we conduct an empircal analysis. The empirical analysis shows that the credit asset securitization of Chinese banks is mainly to improve profitability rather than increase liquidity, and it is more inclined to expand the scale of assets, explore innovative business, and optimize management efficiency.

Key words: credit asset securitization, commercial bank, panel data, motivation