Adaptability of Securitization Model to Conditions of Volatile Financial Structure

Abstract

The Great Financial Crisis of 2008 exposed certain weaknesses in the field of investment banking and the necessity to adapt certain innovative solutions to the newly created economic and financial environment. The process of securitization is a financial innovation, which some financial analysts consider one of the causes of the Great Financial Crisis. Although it is often linked to the emergence of the Great Financial Crisis, the advantages of the securitization model, together with a level of adaptability and enhanced process control throughout all procedural levels, significantly outweigh its perceived shortcomings.

Keywords

• securitization
• standardization
• credit improvement
• systemic risk
• non-performing loans
• bank restructuring
• financial stability
• o31
• g21
• g24