Asset securitizations and bank stability: Evidence from different banking systems

The issuance of asset securitization has been subject to a substantial debate by financial regulators and practitioners post the crisis 2008. This study examines impact securitizations on performance stability banks in dual banking system (Islamic conventional). Using unique sample international located 21 countries, our results provide strong evidence that involved are generally riskier less financially stable. When we comparatively assess different structures conditioned bank type (i.e. Islamic versus conventional securitization), these two models show differential effects stability. Unlike securitization, which is marked significantly low stability, an leads lower risk. prevalent among types during 2008–2009 within non-crisis years. We attribute findings distinctive monitoring constraints included model securitization. provides new insights into alternative offering policy implications for governing countries with dual-banking systems.