Effects of securitization and covered bonds on bank stability

摘要: Abstract This paper empirically investigates the relationship of securitization and covered bonds with bank stability highlights that this varies level a bank's involvement in specific instrument. The study uses data from 46 securitizing bond issuing listed banks Europe for 2000–2014. initial results show some have been heavily involved activity, while issuance does not go beyond certain limit. obtained using quadratic model generalized additive U-shaped between systemic risk banks. However, interesting are bonds. Initial do significant impact on risk, but further analysis shows presence size effect. smaller increases after bonds, larger remain unaffected. support imposing uniform limits issuance; rather such should be linked to size. regulatory framework is needed limit banks’ securitization.