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Chapter 21
DOI: 10.4018/978-1-4666-9548-1.ch021
The Role of Securitization
Market in the Post-Crisis
European Economic Recovery
ABSTRACT
European national economies begin to recover, and securitization can play an important role in support-
ing both monetary and fnancial stability. In particular, securitization may allow banks to lend without
over-committing of the capital and other sources of funding, and thereby to provide indirect market
access to borrowers. Otherwise, such borrowers as SME’s are not able to tap markets directly. At the
same time securitization sufers from stigma, refecting both its adverse reputation among investors and
conservatism among regulators and standard-setters. This is the consequence of misaligned incentives
in years prior to the fnancial crisis, when industry participants became entwined in a self-reinforcing
dynamic between demand and supply of securitizations. Using data accessible within the period of
2009-2014, the chapter will input by the analysis of transformation in the securitization market within
the post-crisis economic recovery of the EU.
INTRODUCTION
Concerns over the future economy of the European
Union (EU) have been persistently growing since
2010 after the notorious 2008 global financial
crisis. Instability of national economies and a
contagious debt crisis makes European existence
insecure. In the last five years, fears of a possible
Eurozone collapse have been transformed into the
real emergent political and economic steps of EU
institutions. Therefore, securitization could be an
answer to the old and new trends and can play an
important role in supporting both monetary and
financial stability. In other words, securitization
matters as soon it creates value by minimizing
the costs associated with market misbalance. In
particular, securitization may allow banks to lend
without over-committing capital and other sources
Oxana Karnaukhova
Southern Federal University, Russia
Inna Nekrasova
Southern Federal University, Russia