Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24–26, 2024, Jinan, China

Research Article

Research on the Effect of Credit Asset Securitization on the Liquidity of Commercial Banks

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  • @INPROCEEDINGS{10.4108/eai.24-5-2024.2350095,
        author={Shaowei  Lin and Qijian  Pan and Zhenlan  Zhang and Lihua  Ye},
        title={Research on the Effect of Credit Asset Securitization on the Liquidity of Commercial Banks},
        proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China},
        publisher={EAI},
        proceedings_a={MSEA},
        year={2024},
        month={10},
        keywords={commercial bank credit asset securitization liquidity},
        doi={10.4108/eai.24-5-2024.2350095}
    }
    
  • Shaowei Lin
    Qijian Pan
    Zhenlan Zhang
    Lihua Ye
    Year: 2024
    Research on the Effect of Credit Asset Securitization on the Liquidity of Commercial Banks
    MSEA
    EAI
    DOI: 10.4108/eai.24-5-2024.2350095
Shaowei Lin1,*, Qijian Pan1, Zhenlan Zhang1, Lihua Ye2
  • 1: Guangdong University Of Foreign Studies
  • 2: Guangdong University Of Technology
*Contact email: lelts@foxmail.com

Abstract

The securitization of credit assets provides a new financing channel for banks, and increases the investment variety of financial market. However, its wide application also has a profound impact on the bank's liquidity management. According to the empirical analysis results of this paper, when commercial banks increase the securitization ratio of credit assets, their liquidity ratio will decrease significantly, resulting in an increase in liquidity risk. Therefore, banks need to show a high degree of prudence when carrying out credit asset securitization, carry out accurate risk assessment of the securitized credit assets, and avoid the occurrence of subsequent defaults.