Bank securitization is a financial tool, which is a process in which banks package credit cards, mortgages and other loans into securities and sell them to investors. This tool has been popularized in western countries, but it is still dominated by the traditional deposit and loan model in China.

Bank securitization can spread risks and improve capital efficiency. Banks can raise funds by selling securities, so that they have more funds to provide more loans and support economic growth. At the same time, investors can obtain stable income by buying securities.

But there are also some risks in bank securitization. First, it may lead to a decline in asset quality. According to the regulations, banks can sell securities of different quality to different subcontractors. If inferior securities are abused, it may damage the reputation of banks. Secondly, securitization transactions may lack transparency for investors, which may lead to increased market volatility.

In a word, bank securitization has many advantages, which can help banks have sufficient capital and spread risks, but it still needs to be handled cautiously and carried out under the review of regulatory agencies.