Securitization is the process of transforming financial assets into securities and it is used by financial companies to raise funds. Securitization is a mortgage backed security which is originated in the markets of USA first in Boston in 1980s and become common in 1990s. The development of accounting standards in America is very beneficial for the development of securitization by enabling the off balance sheet. Thus, off balance sheet is the easiest way of doing banking business for the companies. During the period 2002 – 2006, securitization grew very fast. DSB Law Group organize various workshops on legal issues, finance, accounting and taxation.
Motives Of Securitization
Reduces funding costs
Reduces asset-liability mismatch
Lower capital requirement
Locking in profits
Transfer risks
Off balance sheet
Earnings
Admissibility
Liquidity