Mortgage‐backed Securitization and SME Lending During the Financial and Economic Crisis: Evidence from the Italian Cooperative Banking System. (29th March 2017)

• Record Type: Journal Article
• Authors: Castellani, Davide
• Is Part Of: Economic notes. Volume 47:Number 1(2018)
• Page Start: 187
• Page End: 222
• Publication Date: 2017-03-29
• Subjects: Economics -- Periodicals; 330.9
• DOI: 10.1111/ecno.12096
• Languages: English
• ISSNs: 0391-5026

Abstract

Abstract : I investigate the determinants of the securitization activities of Italian cooperative banks during the financial and economic crisis (2007–2014) and the impact of securitization on the supply of loans to SMEs. The less deposit‐funded, less profitable and less capitalized cooperative banks are, the more likely they are to securitize and the more likely it is that they will securitize to a larger extent. Furthermore, I find that securitization has not directly affected the supply of new SME loans. However, there is strong evidence of a risk‐rebalancing effect of securitization on the balance sheet, especially in the period 2010–2014.