(-) It is beneficial to broaden the financing channels of commercial banks.
Implement securitization of housing mortgage loans, convert housing mortgage loans held by banks into securities and sell them to investors in the capital market. Banks can use this part of the realized funds to issue new housing mortgage loans, thus broadening the bank's financing channels, expanding the bank's sources of funds, and further enhancing the bank's asset expansion ability. In 1990s, more than 60% of mortgage loans in the United States were provided by issuing MBS bonds every year. In China, with the expansion of housing mortgage loan scale, the improvement of capital market and the development of asset securitization technology, housing mortgage securitization will surely become a major channel for commercial banks in China to raise long-term credit funds.
(2) It is conducive to reducing the operational risks of commercial banks.
The term of housing mortgage loans issued by commercial banks in China can be as long as 20 to 30 years, and borrowers generally repay bank loan debts by installments. The liabilities of commercial banks in China are basically all kinds of deposits, most of which are time deposits and demand deposits with a term of less than five years. The maturity of assets and liabilities does not match, which increases the operational risk of banks. With the development of housing mortgage loan business and its increase in the proportion of total bank loans,
Securitization of housing mortgage loan
This structural contradiction of "short-term deposit and long-term loan" will become increasingly prominent, which may lead to a serious shortage of liquidity for banks and have a negative impact on economic development and social stability. Converting low-liquidity loans into high-liquidity securities through mortgage securitization can not only improve the liquidity of bank assets, but also transfer and disperse risks concentrated in banks to investors with different preferences, thus realizing the socialization of bank risks.
(C) is conducive to improving the profitability of commercial banks
The implementation of housing mortgage securitization can not only expand the source of funds for banks, enhance the liquidity of bank assets, but also create new profit growth points for banks. 1. Banks can still retain their service functions for securitized housing mortgage loans; Including the recovery of loan principal and interest, loan account records, organization of loan collateral auction and other related loan services, charging service fees can bring fee income to banks. 2. Banks can also act as securities underwriters to provide services for the sales in mortgage-backed security and charge a certain handling fee. 3. Banks have the right to participate in the distribution of residual cash flow after paying the principal and interest of securities and various expenses. It can be seen that the securitization of housing mortgage loan makes the bank's income break through the limitation of traditional deposit-loan spread and open up new sources of income. At the same time, because the above business is not reflected in the bank's balance sheet, there is no need to increase the bank's capital, thus improving the bank's profitability.
(4) It is conducive to strengthening the capital management of commercial banks.
According to the capital adequacy ratio of commercial banks in Basel Accord, the ratio of capital to weighted risk assets of commercial banks in various countries should be at least 8% (of which the core capital is 4%). The low capital adequacy ratio has always been a prominent problem affecting the reform and development of commercial banks in China. Using asset securitization technology to securitize housing mortgage loans and remove this part from the bank's balance sheet can reduce the number of risky assets of banks accordingly, thus improving the bank's capital adequacy ratio and credit rating accordingly. Therefore, in order to strengthen the management of capital adequacy ratio and improve the capital adequacy ratio, China's commercial banks can adopt "molecular countermeasures", that is, enrich capital through internal and external channels, and "denominator countermeasures", that is, improve capital adequacy ratio through securitization of credit assets, support the moderate expansion of loan scale with sufficient capital, and enhance the bank's risk tolerance.
(5) It is conducive to improving the macro-financial regulation and control of the central bank.
Open market business is one of the basic tools for the central bank to regulate the money supply. Apart from treasury bonds and treasury bills, mortgage-backed security, as a high-quality bond with strong liquidity and high yield, can also be the target for the central bank to buy and sell securities. With the improvement of China's capital market and the expansion of the secondary market of housing mortgage loans, the central bank has expanded its trading targets and intensified its operation by buying and selling housing mortgage bonds in the financial market, so that it can timely adjust the liquidity of commercial banks in breadth and depth, and then effectively adjust the money supply.
(VI) Promoting the development of China's capital market.
According to the internal relationship between money market and capital market, housing mortgage securitization should be based on a sound capital market, which will promote the development and perfection of the capital market. On the one hand, housing mortgage securitization can provide new investment varieties and financing tools with low investment risk and stable cash income for the capital market, promote the transformation from savings to investment, realize the docking of money market and capital market, and become the connector of money market and capital market and the booster of financial deepening; On the other hand, because mortgage securitization is a systematic project, involving banks, ad hoc trust institutions, credit rating agencies, securities companies, asset management companies and institutional and individual investors, its successful application requires not only the coordination of the above participants, but also the corresponding policy environment and legal system. Therefore, the implementation of housing mortgage securitization is conducive to promoting the development of China's capital market.