L'impact du cadre législatif sur les conditions d'octroi des crédits hypothécaires limite-t-il le risque lié à l'utilisation du mécanisme de titrisation

Abstract

In this paper, we analyze the securitization mechanism, the impact it can have on our economy and the way it has developed over time in Belgium and the United States of America.

Firstly, this memory explains how the securitization works, the benefits it provides and the risks that can occur from the point of view of stakeholders. We also defined the different methods used to avoid these risks, the conflicts of interest that could arise for rating agency and the rules implemented in the US and Europe to avoid them. We also illustrated the place and responsability of each actor in the process of securitization.

In a second part, we develop how banking regulations were adapted after the crisis through Basel III, the context of the 2007 economic crisis and how the securitization played a role in amplifying the crisis.

Then, we analyze the legal framework based on regulations that were implemented in Belgium and in the US, and tried to show how all these laws can limit misuse and the risks associated with the securitization mechanism. We also underline the differences between the regulations implemented in both countries and demonstrate that the same tool used under different conditions can produce two opposite effects.

Finally, we give an opinion about the role that ethics play in finance and explain the concept from a theoretical standpoint. We also explore to show why nowadays many people think these two words (ethic and finance) are not really compatible.