Fixed Income Q52

0. Which of the following statements is most likely correct?
Statement 1: Securitization is beneficial for banks because it allows banks to maintain ownership of their securitized assets.
Statement 2: Securitization is beneficial for banks because it increases the funds available for banks to lend.

Answer
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Option : B
Explanation : Securitization allows banks to remove assets from their balance sheet, therefore increasing the pool of available capital that can be loaned out.

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