Why Do (or Did?) Banks Securitize Their Loans? Evidence from Italy
44 Pages Posted: 12 May 2010
Date Written: January 11, 2010
This paper investigates the ex-ante determinants of bank loan securitization by using different econometric methods on Italian individual bank data from 2000 to 2006. Our results show that bank loan securitization is a composite decision. Banks that are less capitalized, less profitable, less liquid and burdened with troubled loans are more likely to perform securitization, for a larger amount and earlier.
Keywords: securitization, credit risk transfer, capital requirements, liquidity needs
JEL Classification: G21, G28, C23, C24
Suggested Citation: Suggested Citation