Ahn, Jung-Hyun; Breton, Régis - In: Journal of Banking & Finance 40 (2014) C, pp. 195-210
We analyze the impact of loan securitization on competition in the loan market. Using a dynamic loan market competition model where borrowers face both exogenous and endogenous costs to switch between banks, we uncover a competition softening effect of securitization that allows banks to extract...