engleski

Effects of securitisation on the banking system

Securitisation of financial property, as a result of frequent financial innovations, is an important phenomenon in the world of finance. Although the reputation of securitisation was severely tarnished by the financial crises, application of securitisation increases the liquidity and profitability of the banking sector. After the escalation of the global financial crisis of 2008, the banks in EU drastically reduced the usage of securitisation techniques. During the recovery period, after 2013, securitisation was again utilised more intensively. Using correlation analysis, it was found that there is a medium strong positive relationship between the level of securitised assets and profitability of banks in the EU. In this way it was proved that securitisation enables banks to first increase their capacity for lending, which is consequently connected to the increase in their profitability.

credit risk, financial system, securitisation

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