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Adaptability of Securitization Model to Conditions of Volatile Financial Structure

Author

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  • Bašić Dragana

    (University of Banja Luka, Faculty of Economics, Banja Luka, Republic of Srpska, Bosnia and Herzegovina)

  • Ćurić Predrag

    (NLB Bank a.d. Banja Luka, Republic of Srpska, Bosnia and Herzegovina)

Abstract

The Great Financial Crisis of 2008 exposed certain weaknesses in the field of investment banking and the necessity to adapt certain innovative solutions to the newly created economic and financial environment. The process of securitization is a financial innovation, which some financial analysts consider one of the causes of the Great Financial Crisis. Although it is often linked to the emergence of the Great Financial Crisis, the advantages of the securitization model, together with a level of adaptability and enhanced process control throughout all procedural levels, significantly outweigh its perceived shortcomings.

Suggested Citation

  • Bašić Dragana & Ćurić Predrag, 2021. "Adaptability of Securitization Model to Conditions of Volatile Financial Structure," Economics, Sciendo, vol. 9(1), pages 205-219, June.
    • Handle: RePEc:vrs:econom:v:9:y:2021:i:1:p:205-219:n:4
    DOI: 10.2478/eoik-2021-0012
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    References listed on IDEAS

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    1. Cardone-Riportella, Clara & Samaniego-Medina, Reyes & Trujillo-Ponce, Antonio, 2010. "What drives bank securitisation? The Spanish experience," Journal of Banking & Finance, Elsevier, vol. 34(11), pages 2639-2651, November.
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    More about this item

    Keywords

    Securitization; Standardization; Credit Improvement; Systemic Risk; Non-Performing Loans; Bank Restructuring; Financial Stability;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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