IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-319-60128-1_1.html
   My bibliography  Save this book chapter

Introduction

In: Securitization: Past, Present and Future

Author

Listed:
  • Solomon Y Deku

    (Nottingham Trent University)

  • Alper Kara

    (Loughborough University)

Abstract

Securitization has significantly changed banks’ role as financial intermediaries from traditional bank lending to transactional banking. Through securitization, banks turn illiquid loans into marketable securities, off-load part of their credit exposure to outside investors and raise new funds to increase lending further. This transformation has implications on bank performance and lending behaviour. Prior to the 2007–2009 financial crisis, securitization was acclaimed as an innovative mechanism for economy-wide efficient risk distribution, increasing the credit supply and enhancing the resilience and stability of the financial system. In contrast, the sceptical view was that securitization reduces banks screening and monitoring incentives, leads to retention of riskier loans, enhances risk appetite, leads to lax lending standards and, overall, destabilizes the financial system.

Suggested Citation

  • Solomon Y Deku & Alper Kara, 2017. "Introduction," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Securitization: Past, Present and Future, chapter 1, pages 1-5, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-319-60128-1_1
    DOI: 10.1007/978-3-319-60128-1_1
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    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:pal:pmschp:978-3-319-60128-1_1. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.