Examining the Effects of Securitization Process on Credit Risk and Banking Stability: Empirical Evidence from Commercial Banks in Iran

Subject Areas : Journal of Investment Knowledge

Mohammad Hossein Fatheh ¹ , Sepideh Ghaffari ²

1 - Instructor, Department of Accounting, Faculty of Management, Economics and Accounting, Payame Noor University, Iran.
2 - MSc. in Accounting

Received: 2015-01-17 Accepted : 2015-02-24 Published : 2015-02-24

Keywords: Securitization, credit risk, Banking Stability,

Abstract :

The purpose of this study is to examine the effects of securitization process on risking behavior and banking stability. In order to achieve this goal, 20 banks were studied under certain conditions in the period 2009 to 2013. Multivariate regression models were employed to analyze the data. The ratio of the converted assets to total assets is considered as the securitization index, the ratio of the balanced assets based on risk to the total assets is the credit risk index, and Z scores were used as banking stability index. The results of this study suggest that the securitization process has no significant effect on credit risk and bank stability among commercial banks of Iran. 

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