Credit Card Receivables Securitization
Subject Areas : Financial engineeringMohammad Mahdi Bahrololoum 1 , negar Ghavamipour 2
1 - Department of finance & Banking,Faculty of Management & Accounting, Allameh Tabataba’i University, Tehran, Iran
2 - Postgraduate of Financial Management, Allameh Tabataba’i University
Keywords: Securitization _Credit Card _ Asset-Backed Securities,
Abstract :
The main purpose of this research is to create tools for financing the monetary system. Due to credit card instructions issuance by the Money and Credit Council, credit cards are expected to play significant role in enhancing demand in the future of the economy. The design of credit card asset-backed securities through the sale and transfer of accounts receivable on credit cards, results in the release of banking resources, liquidity management in the productive part of the economy, lowering the amount of bank claims and improving the capital adequacy ratio of the bank which will help banks to be able to increase loan. The operational model of the issuance credit card asset-backed securities in the form of a structured questionnaire under the aspects of laws and regulations for the issuance of the securities, the impact of the issuance of securities on the financial structures, the consequences of the issuance of securities on the risks associated with credit card issuer and its operations, as well as how to discover the rates and prices of the securities asked by experts. The results are based on statistical tests of the model being appropriate.
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