Revision with unchanged content. Since the 1970s, securitization has
become a major financial technique in the international financial arena.
Most developed countries and some developing countries utilize it for
financing and hedging credit risks. After the Basel II Accord was
released in June 2004, true sale securitization transactions play an
increasingly important role for banks to find cheap funding and
therefore to gain or increase their competitiveness. All member states
of the European Union will implement the Basel II Accord into their
domestic laws. German banks and the German Federal Ministry of Finance
are seeking new methods and policies to support them. The incentive for
this study is provided by the similarities between the German and
Chinese financial system. In addition, due to China's commitments to the
World Trade Organization (WTO) China is under huge pressures to open its
financial market to foreign banks. Analyzing the legal obstacles that
lie in true sale securitization transactions in Germany, I will draw
some useful conclusions for developing securitization in China.