Faculty of Business

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Browsing by Institution Author "BERTAY, Ata Can"

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    Securitization and economic activity: The credit composition channel
    (Elsevier, 2017-02) Bertay, Ata Can; Gong, D.; Wagner, W.; International Finance; BERTAY, Ata Can
    Using an international panel of 104 countries over the period 1995–2012, we analyze the relationship between country-level securitization and economic activity. Our findings suggest that securitization is negatively related to various proxies of economic activity – even prior to the crisis of 2007–2009. We explain this finding as the results of securitization spurring consumption at the expense of investment and capital formation. Consistent with this, we find that securitization of household loans is negatively associated with economic activity, whereas business securitization displays a weak positive association with it, and that household securitization increases an economy's consumption-investment ratio. Our results inform recent initiatives aimed at reviving securitization markets, as they indicate that the impact of securitization crucially depends on the underlying collateral.
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    ArticlePublicationOpen Access
    Should cross-border banking benefit from the financial safety net?
    (Elsevier, 2016) Bertay, Ata Can; Demirgüç-Kunt, A.; Huizinga, H.; International Finance; BERTAY, Ata Can
    Using bank-level data from 84 countries, we find that a higher degree of bank internationalization is associated with higher interest expenses. Internationalization is proxied by a bank's share of foreign liabilities in total liabilities or a Herfindahl index of international liability concentration. Bank interest expenses rise relatively more with internationalization if the bank is underperforming or headquartered in a country with weak public finances, and especially at times of weak world output growth. These results suggest that liability holders of distressed internationalized banks expect less from the financial safety net since lack of an efficient recovery and resolution regime for international banks can make their insolvency very costly to deal with.