Abstract: Asset securitization has always been regarded as one of the important tools to transfer and manage credit risk, and policy factors play an important role in the practice of asset securities in China.This paper empirically tests the effect of policy factors on bank credit risk based on the analysis of the mechanism of asset securitization affecting bank credit risk.The research shows that, on the one hand, at the end of 2014 and the beginning of 2015, the policy change from the examination and approval system of asset securitization to the registration system or the filing system has significantly promoted the effect that asset securitization reduces bank credit risk;on the other hand, driven by policy factors, the impact of asset securitization on credit risk varies among different banks′ micro-characteristics:if asset liquidity, capital scale, profitability are lower, and the proportion of risky assets is higher, asset securitization is more conducive to mitigating credit risk,at the same time, compared with listed banks and larger banks, asset securitization has a higher degree of reduction in credit risk of non-listed banks and smaller banks.Therefore, the regulatory authorities should gradually improve the system, optimize the development model of asset securitization, adopt differentiated policies and measures for different banks, and standardize the main acts of asset securitization business, so as to prevent the overuse of the function of asset securitization.

Key words: policy factors, asset securitization, commercial banks, credit risk