Securitization is a complex financial process where banks create advanced financial products from loans. This technique is crucial in the banking world, especially during financial crises. Banks use securitization to adapt to changing economic conditions and manage risks. The process has evolved from simple loan repackaging to a sophisticated system involving various financial instruments. This paper explores the theory behind securitization and its role in global financial crises. It also looks at how securitization is implemented in countries with less developed financial systems, like Serbia.