An economic model of shadow banking : double tranches and heterogeneous risk tolerance

• Main Authors: Hu, Zehui, Long, Zijie, Yang, Yi
• Other Authors: Wu Guiying Laura
• Format: Final Year Project
• Language: English
• Published: 2016
• Subjects: DRNTU::Social sciences::Economic theory::Macroeconomics
• Online Access: http://hdl.handle.net/10356/66914
• Institution: Nanyang Technological University

Faced with the expansion of accumulated non-performing loans (NPLs), commercial banks widely adopt a financial process of “securitization” to reduce NPLs and transfer credit risks to the debt market. However, repercussions of the subprime mortgage crisis have prompted regulators to contemplate broad...