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

Listed author(s):
  • Massimiliano Affinito

    ()

    (Banca d'Italia)

  • Edoardo Tagliaferri

    ()

    (Banca d'Italia)

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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File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2010/2010-0741/en_tema_741.pdf
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Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 741.

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Date of creation: Jan 2010
Handle: RePEc:bdi:wptemi:td_741_10
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