IDEAS home Printed from https://ideas.repec.org/a/ers/ijfirm/v10y2020i3p132-156.html
   My bibliography  Save this article

The Benefits of Securitisation in the European Peer to Peer Lending Industry

Author

Listed:
  • Dirk Urpani
  • Simon Grima
  • Yannis Thalassinos

Abstract

The 2008 global financial crisis fermented the creation of a financing gap between small borrowers and lending institutions, which may come in scope once again following the global pandemic. Individuals and SMEs requesting funding will get better access to capital if lenders can de-risk their position and hence mitigate their liquidity and cash flow risks. The advent of alternative finance in recent years has brought with it a source of liquidity through the power of the crowd and how this can be maximised through the use of securitisation. Securitisation has been around for a long time and since 2013 this has also been used to de-risk alternative finance and loans generated on a peer to peer (“P2P”) basis. The authors, herein delve into the different risks faced by lenders that offer loans via peer to peer lending platforms and the role that securitisation may play in addressing such risks. The discussion within this article delves further into how securitisation could be regulated and what benefits will be derived from the regulation of securitisation of peer to peer lending. The focus is placed on some themes elicited from the regulatory analysis that is the foundation for any regulatory framework for the regulation of securitisation with peer to peer loans as the securitisation assets.

Suggested Citation

  • Dirk Urpani & Simon Grima & Yannis Thalassinos, 2020. "The Benefits of Securitisation in the European Peer to Peer Lending Industry," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(3), pages 132-156.
    • Handle: RePEc:ers:ijfirm:v:10:y:2020:i:3:p:132-156
    as

    Download full text from publisher

    File URL: https://journalfirm.com/journal/227/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Simona-Valeria TOMA & Ioana-Veronica ALEXA, 2012. "Different Categories of Business Risk," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 109-114.
    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. Iuliia S. Pinkovetskaia & Anton V. Lebedev & Irina V. Gruznova & Igor V. Balynin, 2020. "Catastrophic Business Risk: Data From the Russian Regions," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 83-92.
    2. repec:thr:techub:10014:y:2020:i:1:p:328-338 is not listed on IDEAS

    More about this item

    Keywords

    Peer to peer lending; securitisation; de-risking; alternative finance; finance gap.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

    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:ers:ijfirm:v:10:y:2020:i:3:p:132-156. 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: Marios Agiomavritis (email available below). General contact details of provider: https://journalfirm.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.