Reflections on Asset - Backed Securitization in Turkey: Results of a Financial CGE Model

Date

1993

Author

Sak, Güven
Yeldan, A. Erinç

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

100
views

194
downloads

Cite This

The recently developed "Asset-Backed Securitization System" (ABSS) in Turkey is investigated within the context of bank liability management techniques. It is argued that under the current setting, ABSS is adopted by the banking sector as a mechanism for lowering the reserve requirements; and that it precludes attributes of liquidity and the development of an efficient secondary wholesale market. The financial and the macro effects of the system are further investigated within a computable general equilibrium model of the Turkish economy. The model results suggest that, even though the system has potential for reducing costs of credit, its net effects are nevertheless inflationary. Furthermore, the current practice crowds out corporate loans and government debt instrument holdings of the banks, leaving monetization as the only alternative for the Treasury to finance its fiscal deficit.

URI

https://hdl.handle.net/11511/112296

Collections

Department of Economics, Article