Song, Fenghua; Thakor, Anjan - In: The World Bank Economic Review 27 (2013) 3, pp. 491-513
relative to the existing theories: securitization and risk-sensitive bank capital. We show that securitization propagates … banking advances to the financial market, permitting market evolution to be driven by bank evolution, and market advances are … transmitted to banks through bank capital. We then examine how politicians determine the nature of political intervention designed …