Securitisation and the bank lending channel

Arbeitspapier

The dramatic increase in securitisation activity has odified 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 “originate and hold” to “originate, repackage and sell” has also modified banks’ 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 banks’ 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 and, notably, upon banks’ risk positions. In this respect, the recent experience of the sub-prime mortgage loans crisis is very instructive.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 838

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy
• Subject: asset securitisation ; bank lending channel ; monetary policy ; Verbriefung ; Geldpolitik ; Geldpolitische Transmission ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Altunbas, Yener ; Gambacorta, Leonardo ; Marqués-Ibáñez, David
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/153272
• Last update: 10.03.2025, 11:41 AM CET