Drivers of Securitization in Indian Banking Industry- An Empirical Study

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Main Author: Dr. Priya Anil Mittal
Format: Recurso digital
Language:English
Published: Zenodo 2014
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author Dr. Priya Anil Mittal
author_facet Dr. Priya Anil Mittal
contents <p>Conventionally, a business seeking funds either issues securities or borrows from the market. These avenues, however, must always be supported with sufficient collateral of the business. This limits the scope of getting sufficient finance through the conventional sources, and eventually creates a vacuum between the demand for and avalabiliy of funds. In consequence, the financial experts have devised a solution in the option of structured finance to fil up this demand-supply gap. Structured financial is a complex financing technique, tailored as per this risk-retum and maturity needs of the investors. It is employed by bank, other financial instiutions and corporations as an innovative source of funding and is the foundation of 'securitisation'- creation of security in any financial transaction. Such secutized instruments are tailored according to the requirements of the prospective investors. This mechanism of securitization helps the institutions to raise finance by re-utilizing its idle assets and, enhancement of its liquidity position, asset quality and financial performance, accordingly, this paper uses regression analysis in an attempt to find out the factors that infiuence the sceuritisation mechanism amongst sample of banks and non-banking financial companies (NBFCs) from the Indian Banking Industry. Key words: Structured Finance, Securitisation, Originator, Special Purpose Vehicle (SPV) </p>
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publishDate 2014
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spellingShingle Drivers of Securitization in Indian Banking Industry- An Empirical Study
Dr. Priya Anil Mittal
Conventionally, Demand-Supply, Instruments, Securitization, Asset, liquidity
<p>Conventionally, a business seeking funds either issues securities or borrows from the market. These avenues, however, must always be supported with sufficient collateral of the business. This limits the scope of getting sufficient finance through the conventional sources, and eventually creates a vacuum between the demand for and avalabiliy of funds. In consequence, the financial experts have devised a solution in the option of structured finance to fil up this demand-supply gap. Structured financial is a complex financing technique, tailored as per this risk-retum and maturity needs of the investors. It is employed by bank, other financial instiutions and corporations as an innovative source of funding and is the foundation of 'securitisation'- creation of security in any financial transaction. Such secutized instruments are tailored according to the requirements of the prospective investors. This mechanism of securitization helps the institutions to raise finance by re-utilizing its idle assets and, enhancement of its liquidity position, asset quality and financial performance, accordingly, this paper uses regression analysis in an attempt to find out the factors that infiuence the sceuritisation mechanism amongst sample of banks and non-banking financial companies (NBFCs) from the Indian Banking Industry. Key words: Structured Finance, Securitisation, Originator, Special Purpose Vehicle (SPV) </p>
title Drivers of Securitization in Indian Banking Industry- An Empirical Study
topic Conventionally, Demand-Supply, Instruments, Securitization, Asset, liquidity
url https://doi.org/10.5281/zenodo.17242432