The following quotation is from the October 29 , 1990 issue of Corporate Financing Week:

Chase Manhattan Bank is preparing its first asset-backed debt issue, becoming the last major consumer bank to plan to access the growing market, Street asset-backed officials said. .. . Asset-backed offerings enable banks to remove credit card or other loan receivables from their balance sheets, which helps them comply with capital requirements.

a. What capital requirements is this article refer ring to?

b. Explain why asset securitization reduces capital requirements.