Impact of Asset Securitization on Effectiveness of Monetary Policies

The impact of asset securitization on the monetary policies is an important issue of great theoretical and practical significance. This paper explains it in the following three aspects. Firstly it states the impact of asset securitization on the transmission parth of the monetary policies, pointing out that this impact does not decrease the effective results of interest policy, but it does influence the effective results of the volume of money supply as the intermediate objective of monetary policies. Secondly, it gives the impact of asset securitization on the interest rate term structure, pointing out that asset securitization has strengthened the impact of the short-term interest on the effectiveness of long-term interest. Thirdly, it makes an analysis on the impact of asset securitization on the banking supervision.