Qu’est-ce que la titrisation ? | Banque de France
What is Securitization?
The transcript discusses the concept of securitization, focusing on transforming illiquid assets into tradable securities to facilitate easier selling to investors.
Securitization Process
- Securitization involves converting illiquid assets, such as bank loans, into financial securities for resale to investors.
- A Special Purpose Vehicle (SPV) acts as an intermediary between the originator (e.g., a bank) and investors by purchasing the assets from the originator and selling securities backed by these assets to investors.
- By bundling similar assets, SPVs can offer various financial securities with different risk profiles and returns to investors like banks, insurance companies, or pension funds.
- Following the 2008 crisis linked to subprime mortgages, securitization gained notoriety due to its role in dispersing risky credits globally without clear ownership tracking.
- Despite risks, well-regulated securitization can benefit economies by enabling banks to free up capital for new loans, supporting economic growth.
Regulation and Benefits of Securitization
This section delves into the regulation surrounding securitization and its potential benefits for economic development.
Regulation and Economic Impact
- Regulating securitization is evolving with initiatives like the European STS Label for simple, transparent, and standardized securitizations.
- Banks can enhance their lending capacity by selling portions of their loan portfolios through securitization, allowing them to extend new credit lines.