Securitization and bank efficiency

Zhizhen Chen, Frank Hong Liu, Jin Peng, Haofei Zhang and Mingming Zhou

We examine whether loan securitization has an impact on bank efficiency. Using a sample of large US commercial banks from 2002 to 2012, we find that bank loan securitization has a significant and positive impact on bank efficiency, and this relationship is stronger for banks with higher capital ratios, higher default risk, and lower level of liquidity and diversification. Our results are robust to Heckman self-selection correction and difference-in-difference (DID) analysis. In addition, these results are found mainly in non-mortgage loan securitizations but not in mortgage loan securitizations. Finally, we show that loan sales also have a positive impact on bank efficiency.

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Year of publication:	2022
Authors:	Chen, Zhizhen ; Liu, Hong ; Peng, Jin ; Zhang, Haofei ; Zhou, Mingming
Published in:	Empirical research in banking and corporate finance. - Bingley, U.K. : Emerald Publishing Limited, ISBN 978-1-78973-397-6. - 2022, p. 191-222
Subject:	Securitization \| bank efficiency \| Heckman self-selection \| difference-in-difference \| liquidity and diversification \| loan sales \| financial crisis \| Verbriefung \| Finanzkrise \| Financial crisis \| Effizienz \| Efficiency \| Diversifikation \| Diversification \| Bankgeschäft \| Banking services \| Bank \| Kreditrisiko \| Credit risk \| Bankenliquidität \| Bank liquidity \| Liquidität \| Liquidity

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz im Buch ; Book section
Language:	English
Other identifiers:	10.1108/S1569-373220220000021007 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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