EconPapers    
Economics at your fingertips  
 

Securitization and lending standards: Evidence from the European wholesale loan market

Alper Kara (), David Marques-Ibanez () and Steven Ongena ()

No 1141, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We assess the effect of securitization activity on banks' lending rates employing a uniquely detailed dataset from the euro-denominated syndicated loan market. We find that, in the run up to the 2007-2009 crisis banks that were more active at originating asset-backed securities did not price their loans more aggressively (i.e. with narrower lending spreads) than less-active banks. Using a unique feature of our dataset, we show that also within the set of loans that were previously securitized, the relative level of securitization activity by the originating bank is not related to narrower lending spreads. Our results suggest that while the credit cycle seems to have a major impact of lending standards, the effect of securitization activity appears to be very limited.

Keywords: syndicated loans; Securitization; bank lending rates (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2015-08-06, Revised 2015-08-06
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.17016/IFDP.2015.1141 http://dx.doi.org/10.17016/IFDP.2015.1141 (application/pdf)
http://www.federalreserve.gov/econresdata/ifdp/2015/files/ifdp1141.pdf Full text (application/pdf)

Related works:
Journal Article: Securitization and lending standards: Evidence from the European wholesale loan market (2016) Downloads
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:fip:fedgif:1141

Access Statistics for this paper

More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-07-31
Handle: RePEc:fip:fedgif:1141