ESG Bank is an established bank in the Southwest region of CYC country. The bank is the region's 2nd largest and looking to expand. The Southwest region is a major source of automobile assembly/manufacturing and like business. The bank notably caters to local businesses and the community and enjoys long standing relationships with its business partners.

You were recently hired as head of ESG Bank commercial loan division. As you read the bank's reconciliation statements, you noticed two of ESG's business clients are consistently late with monthly payments on loans since Dec. '21. Due to ESG's financial structure and the clients local presence, their loans were securitized and sold in Jan.'22. (note: you decide on the loan amount and the duration of the loan. Hint: try not to make it complicated).

(a) From a banking perspective, is ESG Bank the client's financial intermediary or is ESG Bank the client's depository institution. Provide a detailed explanation based on the difference between the two and include two economic/financial reasons to support your response.