Securitization: A Financing Vehicle for All Seasons?

Buchanan, Bonnie

doi:10.1007/s10551-015-2636-y

Cited by 19 publications

(11 citation statements)

References 55 publications

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“…In addition, our results expand on prior analyses on the financial determinants of asset securitizations and corporate policies (e.g., Haensel and Krahnen, 2007;Mian and Sufi, 2009;Affinito and Tagliaferri, 2010;Casu et al, 2013) and thus extends our understanding of the global banking model. We provide empirical evidence to support previous discussions in the literature about the role of asset securitization in shifting the responsibility for handling risk in the banking industry and its ethical consequences (Buchanan, 2015). In this sense, our findings draw the attention of regulators and policy makers to the morality of risk-shifting motives in conventional asset securitization activity, stressing the need for regulatory scrutiny to prevent another wave of global financial crises.…”

Section: Introductionsupporting

confidence: 80%

“…Asset securitization as one of the credit boom innovations is regarded as a legitimate activity, provided that the receiving parties of the transactions can handle the risk. If this link between the borrower and the lender is broken, then potential exists for an ethical problem (Buchanan, 2015). Ethical concerns are more likely to arise because of the involuntary transfer of risk to investors through the use of excessive power and deceit (Buchanan, 2015).…”

Section: Asset Securitization and Religiositymentioning

confidence: 99%

“…If this link between the borrower and the lender is broken, then potential exists for an ethical problem (Buchanan, 2015). Ethical concerns are more likely to arise because of the involuntary transfer of risk to investors through the use of excessive power and deceit (Buchanan, 2015). Current practices of securitization before and after the financial crisis have shown that receiving parties are rarely aware that a risk-shifting process is occurring and hence cannot manage and handle the transmitted risk.…”

Section: Asset Securitization and Religiositymentioning

confidence: 99%

“…In principle, asset securitization should allow credit risk to be redistributed to investors who can bear it, which should facilitate the functionality and stability of financial markets (Buchanan, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Religiosity and Bank Asset Securitization

2017

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The global financial turmoil of 2007-2008 underlines the importance of understanding asset securitization, a process that allows banks to shed credit risk, fund their credit growth, and arbitrage capital requirements. Examining this ethically questionable activity has become crucial given its perceived long-term social impact. This paper examines the factors that motivate banks' decisions to enter into asset securitization. In particular, we examine the influence of both organizational and geographic religiosity as important ethical parameters of economic choices on banks' decisions to securitize their assets. We employ propensity scores using a unique database on asset securitization of banks in 22 countries during the period of 2003-2012. We find that both types of religiosity indicators are significantly associated with banks' decisions to securitize. Banks located in countries with high religious importance scores show a lower likelihood to securitize. We also find that religiously adhered banks are likely to embark on a constrained model of securitization, which involves a high level of monitoring. In addition, our analysis suggests that religiously adhered banks are less likely to engage in asset securitization to reduce credit risk by shifting it to new investors. This conclusion is supported by their lower credit risk in the years before securitization. Alternatively, our results suggest that these banks embark on asset securitization to improve their financial and regulatory performance. Our study emphasizes the importance of considering religiosity as an important institutional factor and a monitoring mechanism in future global banking studies. Findings in this study are of importance to researchers, to local and international regulators, and to different stakeholders in the international banking sector.

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Section: Introductionsupporting

confidence: 80%

Section: Asset Securitization and Religiositymentioning

confidence: 99%

Section: Asset Securitization and Religiositymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Religiosity and Bank Asset Securitization

2017

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“…Cvjetanovic (2014) and Murdock (2013) discuss specific derivatives in the recent crisis. On the ethical aspects of securitization, see Buchanan (2015), Nielsen (2010) and Schwarcz (2009). The ethical failures of rating agencies in the valuation of derivatives are explained in Scalet and Kelly (2012) and Strier (2008). use and the potentially high risk.…”

Section: Financial Derivatives and Securitizationmentioning

confidence: 99%

Money and finance:Ethical considerations

Argandoña¹

2018

The Routledge Companion to Business Ethics

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Evaluation of enterprise financial investment environment based on block‐chain and cloud computing

Li¹

2022

Security and Privacy

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Improving and strengthening the various factors of the financial investment system to improve the entire investment system has become an important part of modern economic development. This research is based on block‐chain and cloud computing on the evaluation of corporate financial investment environment. It aims to fully apply the advantages of block‐chain and computing technology to conduct a thorough analysis of corporate financial investment environment and increase the stability of corporate financial investment decisions. Provide economic benefits to a certain extent. The article mainly analyzes the status quo, influencing factors, and evaluation principles of the financial investment environment, and combines the advantages of cloud computing and block‐chain in data acquisition and processing applications to conduct experiments; this research constructs a structural correlation model between the enterprise and the external environment, and investment business data process and cloud computing and financial investment information organization structure model, which can visually present specific investment operation details, and so on; formulate comprehensive evaluation indicators for regional investment, and focus on the role of the institutional environment based on the analysis of the role of regional factors on the regional development of the enterprise. The research results show that cloud computing technology and block‐chain technology have greatly improved the construction of financial investment data whether it is intertemporal, predictive or follow‐up. From the data inspection results, the maximum value of this performance has been expanded from the original 5.98 to 9.27; from the perspective of computational performance, it has been increased from 5.98 to 9.27.

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Securitization: A Financing Vehicle for All Seasons?

Cited by 19 publications

References 55 publications

Religiosity and Bank Asset Securitization

Religiosity and Bank Asset Securitization

Money and finance:Ethical considerations

Evaluation of enterprise financial investment environment based on block‐chain and cloud computing

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