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Why do (or did?) banks securitize their loans? Evidence from Italy

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  • Affinito, Massimiliano
  • Tagliaferri, Edoardo
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    Abstract

    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Financial Stability.

    Volume (Year): 6 (2010)
    Issue (Month): 4 (December)
    Pages: 189-202

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    Handle: RePEc:eee:finsta:v:6:y:2010:i:4:p:189-202

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    Web page: http://www.elsevier.com/locate/jfstabil

    Related research

    Keywords: Originate-to-distribute (O&D) Loan Securitization;

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    Cited by:
    1. Affinito, Massimiliano, 2012. "Do interbank customer relationships exist? And how did they function in the crisis? Learning from Italy," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3163-3184.
    2. Bedendo, Mascia & Bruno, Brunella, 2012. "Credit risk transfer in U.S. commercial banks: What changed during the 2007–2009 crisis?," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3260-3273.
    3. Karim, Dilruba & Liadze, Iana & Barrell, Ray & Davis, E. Philip, 2013. "Off-balance sheet exposures and banking crises in OECD countries," Journal of Financial Stability, Elsevier, vol. 9(4), pages 673-681.

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