| Summary: | 碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 91 === 〔Abstract〕
In recent ten years, Taiwan financial institutions have been facing with the changes of financial environment,which includes privatization of banks, decline of saving and loan rates, and the rising of default rates, that appear to have raised the risk of management and influenced the stability of financial systems. Because of entering the World Trade Organization in 2003. Taiwan financial institutions will compete with many others from all of the world. Given that the exchangeable constraint in financial market and the crisis of financial management, financial asset securitization which becomes significant trend on Taiwan.
Generally, the assets possess charactertics that are well suited to securitization structures, such as credit quality to be realized, homogeneous nature of the underwriting in pools, and cash flow to be made more predicable,that is for the purpose of being recreated by issuers, evaluated by rating company and accepted by investors more easily. This suggests that the residential mortgage is the best product to be testified by the Taiwan market. Furthermore , residential mortgage-backed securitization is viewed by some as the sign of efficient financial assets and obligations, gate of capital fund into residential market, and development of both capital and residential market .
However, Taiwan economy has reached sluggish in recently. Both financial and residential market are downturn throughout the recession, and rates remain trough. Obviously, it will be a severe phenomena if residential mortgage-backed securitization is implemented. In particularly, the diversity of market characteristics among the world often makes it difficult but significant to transplant the benefit from developed countries to us.
This thesis focuses on the profit and the potential problems of residential mortgage-backed securitization which is executed in Taiwan to date. After evaluating and analyzing Taiwan market and loan characteristics , this thesis revolves of conclusions presented as follows:
(1) Developing residential mortgage-backed securtization is likely to bring great advantage to all of financial institutions, markets and investors in Taiwan.
(2) Developing residential mortgage-backed securitization may arise new risks, such as the morality risk surrounding financial institutions to loose their original systems in case of default risk being transferred from lenders to investors, and the converse picking (cherry picking) by financial institutions to select only their best quality assets to include in transactions, thus reducing the overall quality of a balance sheet.
(3) If Taiwan is developing residential mortgage-backed securitization, Taiwan has to resolve the problems of insufficient communication, incentive, product attraction, and the data availability relative to residential mortgage.
(4) According to the information in some market’s respect , it is understandstable that developing residential mortgage-backed securitization is likely to have low profitability in earlier times.
Finally, this thesis makes recommendations by the following suggestions：
(1) Legal framework with security products should be in favor of the market developing.
(2) The default risk and liquidity risk managemt with active programs should be expected.
(3) The structure of securitization adequately is required.
(4) Training the specialist and establishing institutions will bring more investors into the securitization market.
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