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

  • Affinito, Massimiliano
  • Tagliaferri, Edoardo
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    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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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/jfstabil

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