Banking regulation covering permitted asset holdings has been consistently developed to ensure the safety and soundness of financial institutions and to mitigate asymmetries in financial markets that can lead to systemic risk. In a word count of no more than 400 words

1) Name and Describe two Off balance sheet financial asset activities that major Chartered Banks can engage in and

2) give reasons why some financial institutions might choose to invest with them and

3) Give your views on potential future risks to participating bank income generation over the longer term. (20 Marks)