Disentangling the impact of securitization on bank profitability


Weempiricallyevaluatethechannelsthroughwhichsecuritizationimpactsbankprofitability.To this end, we analyze the role played by bank risk,costoffunding,liquidityandregulatorycapital in explaining the relationship between securitization and bank profitability. We find that securitization activities tend to boost profitability. We also show that bank risk, cost of funding, liquidity and regulatory capital individually and jointly act as transmission channels in the securitization-profitability relationship. In addition, we break down the securitization effects on bankprofitabilityintodirectandindirecteffectsandidentifythecontributionofeachindividual transmissionchannelintheoverallimpactonbankprofitability.Ourfindingshaveseveralimplicationsforbanks,financialmarkets,and regulatorKafrelsheikh University, Egyp

Similar works

Full text


Brunel University Research Archive

Provided a free PDF
oaioai:bura.brunel.ac.uk:2438/17554Last time updated on 12/18/2020View original full text link

This paper was published in Brunel University Research Archive.

Having an issue?

Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.