Abstract: Asset securitization innovation is bound to affect the individual behavior of the bank, and then has a “spillover effect” to the macro-finance. With the increasing speed of asset securitization innovation, the mechanism and path of its impact on individual bank risk taking and macro financial stability should be further clarified, so as to facilitate reasonable supervision. From a dynamic perspective, the asset securitization innovation is based on the impact of the individual behavior of the bank on its risk bearing level and influences the financial stability through a certain “spillover effect”, and the impact of asset securitization on bank risk assumes a three stage dynamic path from microcosmic to macro transition. Therefore, we should promote asset backed securities innovation with the attitude of “prudent and encouragement”, enable banks to make rational use of the basic functions of asset securitization innovation, consider the supervision of asset securitization from the macro level, so as to really play the essential role of asset securitization innovation.

Key words: asset securitization innovation, bank risk taking, mechanism, path construction