Drivers Of Securitisation In Indian Banking Industry - An Empirical Study

Ms. Nibedita Roy and Dr. Tanupa Chakraborty

Paradigm, 2011, vol. 15, issue 1-2, 1-7

Abstract: Conventionally, a business seeking funds either issues securities or borrows from the market. These avenues, however, must always be supported with sufficient collateral of the business. This limits the scope of getting sufficient finance through the conventional sources, and eventually creates a vacuum between the demand for and availability of funds. In consequence, the financial experts have devised a solution in the option of structured finance to fill up this demand-supply gap. Structured finance is a complex financing technique, tailored as per the risk-return and maturity needs of the investors. It is employed by banks, other financial institutions and corporations as an innovative source of funding and is the foundation of 'securitisation' creation of security in any financial transaction. Such securitized instruments are tailored according to the requirements of the prospective investors. This mechanism of securitization helps the institutions to raise finance by re-utilizing its idle assets and, enhancement of its liquidity position, asset quality and financial performance. Accordingly, this paper uses regression analysis in an attempt to find out the factors that influence the securitisation mechanism amongst a sample of banks and non-banking financial companies (NBFCs) from the Indian Banking Industry.

Keywords: Structured Finance; Securitisation; Originator; Special Purpose Vehicle (SPV) (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0971890720110102 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:padigm:v:15:y:2011:i:1-2:p:1-7

DOI: 10.1177/0971890720110102

Access Statistics for this article

More articles in Paradigm
Bibliographic data for series maintained by SAGE Publications ().