Securitization, bank business models and financial stability
Lyubomir Georgiev
Abstract
Open-access reader
Lyubomir Georgiev
Abstract
Open-access reader
The report focuses on the relation "securitization - business models of banking - financial crisis of 2007-08." The analysis shows that: the rapid development of the securitization process is not a signal of the declining role of banks as financial intermediaries; one of the main reasons for the reduction of financial stability at the beginning of the XXI century is the fact that as a result of securitization, banks cease to be banks.
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The report focuses on the relation "securitization - business models of banking - financial crisis of 2007-08." The analysis shows that: the rapid development of the securitization process is not a signal of the declining role of banks as financial intermediaries; one of the main reasons for the reduction of financial stability at the beginning of the XXI century is the fact that as a result of securitization, banks cease to be banks.
Key concepts: Securitization, Financial system, Business, Financial intermediary, Financial stability, Financial crisis, Intermediary, Finance