IDEAS home Printed from https://ideas.repec.org/a/mbr/jmonec/v15y2020i1p1-24.html
   My bibliography  Save this article

The Effects of Asset Securitization on Banks' Performances (Case Study: Bank Saderat Iran 2005-2015)

Author

Listed:
  • Pazhouhi , Asrar

    (Faculty of Economics, Management and Social Sciences, Shiraz University)

  • Marzban , Hossein

    (Faculty of Economics, Management and Social Sciences, Shiraz University)

  • Dehghan Shabani , Zahra

    (Faculty of Economics, Management and Social Sciences, Shiraz University)

  • Moradi , Javad

    (Faculty of Economics, Management and Social Sciences, Shiraz University)

Abstract

The purpose of this study is to investigate the effects of "Asset Securitization" on banks' performances. Asset securitization is generally defined as the "financial process by which an owner of an asset, such as a portfolio of loans, receives cash upfront in exchange for the future cash flows from the asset without selling the asset in a normal contractual sales agreement." (Menzi et al., 2018). Asset securitization has not been applied in Iranian banks so far. Therefore, we have devised an approach to examine the variation in performance in the presence or the absence of a securitized portfolio by using a "Propensity Score Matching" method. In this study, the effect of "Asset Securitization" is hypothetically assessed for Bank Saderat Iran. To show the meaningfulness of the difference between two states, "variance equality F-test" as well as "couplet-test" is used. The results show that "Asset Securitization" has a positive and meaningful effect on the net profit of the Bank Saderat Iran. Moreover, to study the relationship between profitability and non-performing loans, the Bayesian Vector Autoregressive model is applied, and the results show that non-performing loans harm the bank's profitability.

Suggested Citation

  • Pazhouhi , Asrar & Marzban , Hossein & Dehghan Shabani , Zahra & Moradi , Javad, 2020. "The Effects of Asset Securitization on Banks' Performances (Case Study: Bank Saderat Iran 2005-2015)," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 15(1), pages 1-24, January.
    • Handle: RePEc:mbr:jmonec:v:15:y:2020:i:1:p:1-24
    as

    Download full text from publisher

    File URL: http://jme.mbri.ac.ir/article-1-506-en.pdf
    Download Restriction: no
    File URL: http://jme.mbri.ac.ir/article-1-506-en.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fabio Panetta & Alberto Franco Pozzolo, 2018. "Why do banks securitise their assets? Bank-level evidence from over one hundred countries in the pre-crisis period," Temi di discussione (Economic working papers) 1183, Bank of Italy, Economic Research and International Relations Area.
    2. repec:diw:diwwpp:dp485 is not listed on IDEAS
    3. Torsten Persson, 2002. "Do Political Institutions Shape Economic Policy?," Econometrica, Econometric Society, vol. 70(3), pages 883-905, May.
    4. Boesel, Nils & Kool, Clemens & Lugo, Stefano, 2018. "Do European banks with a covered bond program issue asset-backed securities for funding?," Journal of International Money and Finance, Elsevier, vol. 81(C), pages 76-87.
    5. Huong Le & Rajesh Narayanan & Lai Vo, 2016. "Has the Effect of Asset Securitization on Bank Risk Taking Behavior Changed?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 49(1), pages 39-64, February.
    6. Andrea Bedin & Monica Billio & Michele Costola & Loriana Pelizzon, 2019. "Credit Scoring in SME Asset-Backed Securities: An Italian Case Study," JRFM, MDPI, vol. 12(2), pages 1-28, May.
    7. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Apeti, Ablam Estel & Combes, Jean-Louis & Minea, Alexandru, 2024. "Inflation targeting and fiscal policy volatility: Evidence from developing countries," Journal of International Money and Finance, Elsevier, vol. 141(C).
    2. Seow Eng Ong & Davin Wang & Calvin Chua, 2023. "Disruptive Innovation and Real Estate Agency: The Disruptee Strikes Back," The Journal of Real Estate Finance and Economics, Springer, vol. 67(2), pages 287-317, August.
    3. Raymundo M. Campos-Vázquez, 2013. "Efectos de los ingresos no reportados en el nivel y tendencia de la pobreza laboral en México," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 23-54, November.
    4. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.
    5. Irene Bertschek & Joern Block & Alexander S. Kritikos & Caroline Stiel, 2024. "German financial state aid during Covid-19 pandemic: Higher impact among digitalized self-employed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 76-97, January.
    6. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    7. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    8. Gabrielle Wills, 2016. "Principal leadership changes in South Africa: Investigating their consequences for school performance," Working Papers 01/2016, Stellenbosch University, Department of Economics.
    9. Bruno Amable & Donatella Gatti & Jan Schumacher, 2006. "Welfare-State Retrenchment: The Partisan Effect Revisited," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(3), pages 426-444, Autumn.
    10. Cabras, Stefano & Fidrmuc, Jan & de Dios Tena Horrillo, Juan, 2017. "Minimum wage and employment: Escaping the parametric straitjacket," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-20.
    11. Aiello, Francesco & Albanese, Giuseppe & Piselli, Paolo, 2019. "Good value for public money? The case of R&D policy," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1057-1076.
    12. Nguyen Thi Chau & Tofael Ahamed, 2022. "Analyzing Factors That Affect Rice Production Efficiency and Organic Fertilizer Choices in Vietnam," Sustainability, MDPI, vol. 14(14), pages 1-11, July.
    13. Salvatore Bimonte & Antonella D’Agostino, 2021. "Tourism development and residents’ well-being: Comparing two seaside destinations in Italy," Tourism Economics, , vol. 27(7), pages 1508-1525, November.
    14. Marini, Andrea, 2024. "Updating the retirement-consumption puzzle in Italy: who are the most affected?," Working Paper Series 2936, European Central Bank.
    15. Gail Pacheco & Bill Cochrane, 2015. "Decomposing the temporary-permanent wage gap in New Zealand," Working Papers 2015-07, Auckland University of Technology, Department of Economics.
    16. Bi, Gongbing & Lv, Jiancheng, 2023. "Can an early exit mechanism attract more pledges in equity-based crowdfunding? Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    17. Asad K. Ghalib & Issam Malki & Katsushi S. Imai, 2012. "Microfinance and its role in household poverty reduction: findings from Pakistan," Global Development Institute Working Paper Series 17312, GDI, The University of Manchester.
    18. Takahashi, Ryo, 2021. "How to stimulate environmentally friendly consumption: Evidence from a nationwide social experiment in Japan to promote eco-friendly coffee," Ecological Economics, Elsevier, vol. 186(C).
    19. Marco Caliendo & Stefan Tübbicke, 2020. "New evidence on long-term effects of start-up subsidies: matching estimates and their robustness," Empirical Economics, Springer, vol. 59(4), pages 1605-1631, October.
    20. Massimiliano BRATTI & Chiara BROCCOLINI & Stefano STAFFOLANI, 2006. "Is '3+2' Equal to 4? University Reform and Student Academic Performance in Italy," Working Papers 251, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

    More about this item

    Keywords

    Asset Securitization; Banks' Operation Criteria; Matching Estimator Approach; Couple t-Test;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mbr:jmonec:v:15:y:2020:i:1:p:1-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. E. (email available below). General contact details of provider: https://edirc.repec.org/data/mbcbiir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.