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Effect of Asset Securitization on Bank Micro-prudential Supervision——Based on Liquidity |
LI Yue1,FENG Zongxian1,NI Zhiling1 |
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Abstract By studying the impact of asset securitization on bank stability, we found that if financial innovation increase the liquidity of the banking assets in the normal case, it will improve the bank’s risk exposure level, reducing the level of bank supervision efforts. But in an extraordinary period, Securitization of financial innovation, increasing the liquidity of the banking assets , will increase them both. Overall, if the asset securitization and other financial innovations, improve the liquidity of the banking assets, they will increase the risk of individual banks.
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Received: 12 May 2014
Published: 15 October 2014
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Corresponding Authors:
LI Yue
E-mail: elf_nm@163.com
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