Research Repository

Securitization and Bank Performance

Casu, B and Clare, A and Sarkisyan, A and Thomas, S (2013) 'Securitization and Bank Performance.' Journal of Money, Credit and Banking, 45 (8). 1617 - 1658. ISSN 0022-2879

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Abstract

Using predominantly precrisis U.S. commercial bank data, this paper employs a propensity score matching approach to analyze whether individual banks did improve their performance through securitization. On average, our results show that securitizing banks tend to be more profitable institutions, with higher credit risk exposure. Despite a more diversified funding structure, they face higher funding costs. We also find that securitizing banks tend to hold larger and less diversified loan portfolios, have less liquidity, and hold less capital. However, our analysis does not provide evidence to suggest that securitization had an impact upon bank performance. © 2013 The Ohio State University.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Jim Jamieson
Date Deposited: 24 Nov 2013 09:49
Last Modified: 30 Jan 2019 16:18
URI: http://repository.essex.ac.uk/id/eprint/8541

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