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Securitisation, credit risk and lending standards revisited

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  • Marqués-Ibáñez, David

Abstract

It is commonly argued that in the run-up to the recent financial crisis, banks selected and securitised loans of relatively lower credit quality. This article reviews new evidence from the euro-denominated corporate loan market which suggests that this presumption does not hold for this market segment in Europe. Banks that were more active in securitisation markets are also not found to offer, all else being equal, lower lending rates to borrowers. Our results complement earlier findings from the US securitisation markets. JEL Classification: G21, E42

Suggested Citation

  • Marqués-Ibáñez, David, 2017. "Securitisation, credit risk and lending standards revisited," Research Bulletin, European Central Bank, vol. 32.
    • Handle: RePEc:ecb:ecbrbu:2017:0032:
    Note: 328790
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    References listed on IDEAS

    as
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    5. Altunbas, Yener & Gambacorta, Leonardo & Marques-Ibanez, David, 2009. "Securitisation and the bank lending channel," European Economic Review, Elsevier, vol. 53(8), pages 996-1009, November.
    6. Joon-Ho Hahm & Hyun Song Shin & Kwanho Shin, 2013. "Noncore Bank Liabilities and Financial Vulnerability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45, pages 3-36, August.
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    8. Kara, Alper & Marques-Ibanez, David & Ongena, Steven, 2016. "Securitization and lending standards: Evidence from the European wholesale loan market," Journal of Financial Stability, Elsevier, vol. 26(C), pages 107-127.
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    More about this item

    Keywords

    banks; credit risk; financial stability; securitisation;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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