01819cas a2200253 a 4500 AALejournalIMF016729 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475522723 1018-5941 BD-DhAAL BD-DhAAL Pescatori, Andrea. Credit, Securitization and Monetary Policy : Watch Out for Unintended Consequences / Andrea Pescatori, Juan Sole. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We show evidence that interest rate hikes slowdown loan growth but lead intermediation to migrate from banks' balance sheets to non-banks via increased securitization activity. As such, higher interest rates have the potential for unintended consequences; raising systemic risk rather than lowering it by pushing more intermediation activity to more weakly regulated sectors. In the past, this increased securitization activity was driven primarily byb private-label securitization. On the other hand, the government sponsored entities like Freddie Mac and Fannie Mae appear to react to higher policy rates by cutting back on their securitization activity but expanding loans to the Federal Home Loan Bank system. Mode of access: Internet Sole, Juan. IMF Working Papers; Working Paper ; No. 2016/076 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/076/001.2016.issue-076-en.xml IMF e-Library