II. The effect of Shadow Banking from the Traditional Banks’ power to Expand Credit
juli 7, 2020by himnCalifornia Installment Loans Neca Me0
How can this securitization impact the credit expansion and company period?
The first effectation of securitization would be to transfer the credit danger of the loans from the banks’ balance sheets to your investors through asset-backed securities (Gertchev, 2009). This ‘regulatory arbitrage’ enables institutions to circumvent book and money adequacy demands and, consequently, to enhance their credit expansion.
