Deposit competition and mortgage securitization / Danny McGowan, Huyen Nguyen, Klaus Schaeck ; Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Discovery
189101014X
URN
urn:nbn:de:gbv:3:2-1065433
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [2024?]
Umfang
1 Online-Ressource (III, 63 Seiten, 0,92 MB) : Diagramme
Ausgabevermerk
This version: 10.06.2024
Sprache
eng
Anmerkungen
Literaturverzeichnis: Seite 29-34
Inhaltliche Zusammenfassung
We study how deposit competition affects a bank’s decision to securitize mortgages. Exploiting the state-specific removal of deposit market caps across the US as a source of competition, we find a 7.1 percentage point increase in the probability that banks securitize mortgage loans. This result is driven by an 11 basis point increase in deposit costs and corresponding reductions in banks' deposit holdings. Our results are strongest among banks that rely more on deposit funding. These findings highlight a hitherto undocumented and unintended regulatory cause that motivates banks to adopt the originate-to-distribute model.
Schriftenreihe
IWH-Diskussionspapiere ; 2021, no. 6 (May 2021) [rev.] ppn:837399270