Securitization and Alternative Financing Methods

We conducted an econometric analysis of panel data to determine the possible factors influencing the volume of MBS emissions in Russia, based on a sample of the economic and financial indicators in the period 2006 to 2019 with quarterly frequency. The results showed that the volume of MBS emissions was influenced by such factors as the volume of household deposits for the past year, the volume of short-term debt securities issued by banks and the share of liabilities attracted from the interbank market. Last year's household deposits variable has a positive impact on the volume of MBS issued, while the volume of short-term debt securities issued by banks and the share of liabilities attracted from the interbank market negatively affect the MBS issue volume. The increase in household deposits on the bank’s balance sheet makes it possible to issue more loans. At the same time, an increase in household deposits can be an indicator of a high standard of living. More deposits on the bank balance sheet, the higher the demand for housing mortgages. The volume of issued short-term debt securities of banks and the share of liabilities attracted from the interbank market adversely affect the volume of MBS issuance as alternative financing methods. The resulting factors reflect the desire of banks to acquire cash to solve liquidity problems.