Securitisation and the bank lending channel
Yener Altunbas (),
Leonardo Gambacorta () and
David Marquï¿½s ()
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David Marquï¿½s: European Central Bank, Monetary Policy Directorate
Authors registered in the RePEc Author Service: David Marques-Ibanez ()
No 653, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area
The dramatic increase in securitisation activity has modified the functioning of credit markets by reducing the fundamental role of liquidity transformation performed by financial intermediaries. We claim that the changing role of banks from ï¿½originate and holdï¿½ to ï¿½originate, repackage and sellï¿½ has also modified banksï¿½ abilities to grant credit and the effectiveness of the bank lending channel of monetary policy. Using a large sample of European banks, we find that the use of securitisation appears to shelter banksï¿½ loan supply from the effects of monetary policy. Securitisation activity has also strengthened the capacity of banks to supply new loans but this capacity depends upon business cycle conditions as well as upon banksï¿½ risk positions. In this respect the recent experience of the sub-prime mortgage loans crisis is very instructive.
Keywords: asset securitisation; bank lending channel; monetary policy (search for similar items in EconPapers)
JEL-codes: E44 E52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-ure
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Journal Article: Securitisation and the bank lending channel (2009)
Working Paper: Securitization and the bank lending channel (2008)
Working Paper: Securitisation and the bank lending channel (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_653_07
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