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The securitization of loans results in banks doing what? Securitisation of loans results in banks: I. Transferring the credit risk of loans from their balance
The securitization of loans results in banks doing what?
Securitisation of loans results in banks: I. Transferring the credit risk of loans from their balance sheet to other financial institutions. II. Reducing due diligence in the loan appraisal process. III. Increasing the monitoring of these loans. IV. Freeing up capital so that they can bypass capital requirements. Only I is true. Only I and II are true. Only III is true. I, II and IV are true. Only II is trueStep by Step Solution
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