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dc.contributor.authorSenarath, Shanuka
dc.date.accessioned2018-04-17T01:30:33Z
dc.date.available2018-04-17T01:30:33Z
dc.date.issued2017
dc.identifier.issn1753-3627
dc.identifier.doi10.1504/IJBG.2017.081945
dc.identifier.urihttp://hdl.handle.net/10072/342624
dc.description.abstractPrima facie securitisation played a prominent role in the recent global financial crisis. Moral hazard associated with securitisation is the key element behind the failure of securitisation. Risk retention is the US legislator's response to address the moral hazard issue associated with the originate-to-distribute model. This paper adopts a lexieconomic framework to analyse the risk retention provisions of the Dodd-Frank Act and proves that said provisions are not capable of eliminating moral hazard associated with securitisation. This paper argues that in order to ensure proper screening of the borrower, the cost for the lender for not engaging in proper screening and monitoring should be higher than the benefits she gains by not screening. Inter alia this paper further argues that the inclusion of non-recourse mortgages would make securitisation schemes susceptible to changes in home prices.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherInderscience Publishers
dc.relation.ispartofpagefrom153
dc.relation.ispartofpageto166
dc.relation.ispartofissue2
dc.relation.ispartofjournalInternational Journal of Business and Globalisation
dc.relation.ispartofvolume18
dc.subject.fieldofresearchInternational Economics and International Finance
dc.subject.fieldofresearchBusiness and Management
dc.subject.fieldofresearchcode140210
dc.subject.fieldofresearchcode1503
dc.titleSecuritisation and the global financial crisis: Can risk retention prevent another crisis?
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dc.description.versionAccepted Manuscript (AM)
gro.facultyGriffith Business School, Department of International Business and Asian Studies
gro.rights.copyright© 2017 Inderscience Publishers. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal website for access to the definitive, published version.
gro.hasfulltextFull Text
gro.griffith.authorSenarath, Shanuka L.


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