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Economic Commentary

Securitization: More than Just a Regulatory Artifact

Competitive and regulatory pressures have prompted banks and other financial intermediaries to participate in credit markets in ways that are not directly reflected on their balance sheets. This poses a problem for regulators, who must assess the risks of these off-balance-sheet lending activities. One such activity is the packaging of loans into marketable securities, which is known as asset-backed lending or securitization.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Carlstrom, Charles T., and Katherine Samolyk. 1992. “Securitization: More than Just a Regulatory Artifact.” Federal Reserve Bank of Cleveland, Economic Commentary 5/1/1992.