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Securization and banks´ capital structure

Author

Listed:
  • Andres Almazan

    (UNIVERSITY OF TEXAS AT AUSTIN)

  • Alfredo Martín-Oliver

    (UNIVERSITAT ILLES BALEARS)

  • Jesús Saurina

    (Banco de España)

Abstract
Asset securitization offers banks the possibility of altering their capital structures and the financial intermediation process. This study shows that the introduction of securitization is associated with fundamental changes in the funding policies of banks. In particular, we present evidence of more intense use of securitization by banks (i) with stronger growth opportunities; (ii) with liquidity constraints; (iii) with costlier alternative sources of funding; and (iv) with restricted access to capital markets owing to adverse selection. Securitization is also observed to be higher on the pecking order of financing choices of small and medium-sized banks and non-listed banks, which are likely to face more severe adverse selection problems

Suggested Citation

  • Andres Almazan & Alfredo Martín-Oliver & Jesús Saurina, 2015. "Securization and banks´ capital structure," Working Papers 1506, Banco de España.
    • Handle: RePEc:bde:wpaper:1506
    as

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    File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/15/Fich/dt1506e.pdf
    File Function: First version, March 2015
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    References listed on IDEAS

    as
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    Cited by:

    1. Zhang, Jinqing & Yin, Yiwen & Zhang, Linlin, 2019. "Determinants of loan securitization in Chinese banking: Cost-benefit-based analysis," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).

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    More about this item

    Keywords

    securitization; capital structure; adverse selection; pecking order;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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