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

  • Massimiliano Affinito


    (Banca d'Italia)

  • Edoardo Tagliaferri


    (Banca d'Italia)

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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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    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
    Date of revision:
    Handle: RePEc:bdi:wptemi:td_741_10
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