The Impact of Credit Securitization on Bank Stability: Evidence from Commercial Banks in China
- Resource Type
- Conference
- Authors
- Dai, Yuzan; Zhu, Chengke; Cui, Mingchao
- Source
- 2019 International Conference on Economic Management and Model Engineering (ICEMME) ICEMME Economic Management and Model Engineering (ICEMME), 2019 International Conference on. :373-376 Dec, 2019
- Subject
- Computing and Processing
credit securitization
bank stability
commercial banks
credit risk
Liquidity risk
- Language
In this paper, we employ panel data model to discuss the impact of credit securitization on banks' stability in China. We find that asset securitization of commercial banks has a significant negative impact on the issuing banks' financial stability. That is to say, asset securitization activities not only increase the sources of liquidity and transfer credit risk of China's commercial banks, but also reduce its stability.