The Impact of Securitization on Banks’ Mortgage Loan Growth

Chi Chun Liu, Szu Jung Wu, Dong Rui Yang

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates how asset securitization affects U.S. bank holding companies’ mortgage lending behavior during pre- and post-financial crisis periods. Using Home Mortgage Disclosure Act (HMDA) data and FR Y9-C data from 2005 to 2017, we find a positive effect of asset securitization on U.S. holding companies’ approved mortgage loan growth during pre-crisis period but such positive effect decreases dramatically after the crisis. Our results suggest that asset securitization do help increase banks’ credit supply before the crisis while after the crisis, banks, even those relatively active in asset securitization and sales market, became more cautious with their lending.

Translated title of the contribution資產證券化對銀行抵押貸款規模成長之影響
Original languageEnglish
Pages (from-to)33-89
Number of pages57
JournalJournal of Accounting Review
Volume77
DOIs
Publication statusPublished - 2023

All Science Journal Classification (ASJC) codes

  • Accounting
  • General Business,Management and Accounting

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