Adaptability of Securitization Model to Conditions of Volatile Financial Structure

Abstract The Great Financial Crisis of 2008 exposed certain weaknesses in the field investment banking and necessity to adapt innovative solutions newly created economic financial environment. process securitization is a innovation, which some analysts consider one causes Crisis. Although it often linked emergence Crisis, advantages model, together with level adaptability enhanced control throughout all procedural levels, significantly outweigh its perceived shortcomings. system Republic Srpska continues be characterized by growth nonperforming loans bank assets, mainly caused increased systemic risk due current COVID-19 pandemic declining activity country, but also well-developed infrastructure, necessary order allow application model contribute increasing stability conditions volatile structure. restructuring can mainstay stabilization system. aim research demonstrate that adapted assets banks unstable structure may increase risk. Securitization increases supply quality instruments, number participants transformation develops more resilient market. results include additional funding sources for institutions, generation assets’ problems, liquidity diversification many their clients.