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Please explain clearly and specifically. The banking industry experienced increased competition on both sides of the balance sheet starting in the 1980s. (a) Describe two

Please explain clearly and specifically.

The banking industry experienced increased competition on both sides of the balance sheet starting in the 1980s.

(a) Describe two examples of increased competition for acquiring funds (liabilities) and two examples of increased competition for the uses of funds (assets).

(b) Banks often sells loans that are then securitized. Explain the process of securitization. How are the incentives to mitigate adverse selection and moral hazard affected by the sale of a loan?

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