This paper conducts a macroeconomic welfare analysis of securitization in a real business cycle model with a banking … sector. I model securitization as an optional interbank funding channel that credibly reduces the diversion ability on … borrowed funds and increases operation costs on loan assets. In effect, securitization allows banks to increase the asset size …

significantly influencing the risk-taking attitudes of bank managers. Particularly, we intend to substantiate the theory that banks … banking sectors due to a missing ability to monitor bank managers. Our results underline that these problems appear to mislead … bank managers showing an unreasonable risk-taking behavior. In a first stage, we rely on a theoretical model explaining …

This paper presents an agency theory explanation for certain operational risks and the subsequent impact as a result of … changes, the aim of this study is to provide additional theory to help understand the financial and reputational impact on the …