18 laenads tottwh eorcrrue ldeist ar antdi nrgesg uo lf awt iho inc sh hoanvee sahl soou ltdr i iedde taol l ys tbi me iuslsaut ee dt hbey eanst mr a anlcl eC oRfAs. mT ha lel se er or newer CRAs to reduce the duopoly of Moody’s and S&P in the rating market. 1.4 Transformative banking Tt oh- eh op lrdo cme os sd oe fl st oe caunr iot irzi ag ti ni oant eh- at os -tdr ai snt sr if bo rumt eemd tohdee rl .oTl er aodf ibt ai onnkasl lf yr ,obma na kn so ar icgt i an sa taen- it nh teei rr me xepdoi as ruyr ebse ut wn teiel nmbaot ur rroi twy . eIrns tahni sd odrei pg ionsai tt oe r- tso, -whho el dr emboadnekls, rhi os kl dma na nd amg eomn iet on rt is achieved mainly by constructing a well-diversified portfolio. The securitization tt er ac dh en ai qbul ee , l ihqouwi de vs ee rc, u or if tf ei erss abnadn kr se mt hoev eo pl opaonrst uf nr oi tmy tt ho e ti ru rbna l ial nl i cqeu isdh eaest s e– t sa gi notaol sboe ul ogwh .t I bt yt hbe ar enbkys rbeemc aouvsees po af rht i og hf t hc aepci rt ea dl irteeqxupi roesmu reens t fsr of omr tshuec hb al no ak n’ ssbaasl aenxcpel as ihneeedt at on dt rfarne es fseur pc cr ea dp ii tt aal nt od i spsouret fpo ol i toe nr itsi akl on fe wb alno ka sn st .oI nc aa pd idt ai tli omn a, irtkpertos v(i sdeees, ae m. g .e, cAhyadni ni s m& Altunbas, 2016). The securitization process thus intertwines banks with financial markets, creating more risk sharing between them but also make banks vulnerable to volatility in financial markets (e.g., Boot & Marinč, 2010). Hi mopwl iecvaet ri o, ntsh et h aot r iwg ienraet er-et ov -edailsetdr i bduutrei n gm tohdee l G FaCl s. oB ahnakss st eonmdee d s teor i or ue ds u caed vtehresier st hc reeseonl ei npguarnpdo sme ot on isteocrui nr igt isztea. nI tdaalrsdose, np ha ratni ccue lda trhl ye froi rs kt haopspeeltoi taenos f tbhaant kwsearse tihs es yu ekdn ef owr ti mh apt l itchaet i roi ns ks so fwt hi l el bo er i gt ri an na st ef e- tror -eddi st tor i tbhui rt ed mp aordt ei el ,sr ea gn uy lwa taoyr. sF ho al l voewi innt gr otdh ue cs ee dntehgea rt ii vs ke retention requirements after the GFC. The risk retention rule requires the originator or sponsor to retain a significant portion (5%) of the securitization on their balance sf rhoeme t dt hi frf oe ruegnhto ruet gtuhlea tl oi freyomf ae tt hr aondssa ct ot i or ne t. aTi hn et ht rea npcohret i or ent aoi fn et hr ei ssaelcl ou wr i tei dz attoi ocnh. oTohs ee
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