Title: The effect of securitization on financial stability Securitization can be defined as the process of transforming illiquid or risky financial assets into marketable securities (Szulczyk, 2016). Proponents of securitization argue that banks and other financial institutions can reduce or mitigate their risks by partaking in securitisation. This means that an efficient market for securitization can be supportive of the financial system and broader economy. However, securitization has been criticised for its role in intensifying the effects of systemic risk in the financial system. Consequently, there is an ongoing debate of whether securitization was the major cause of the 2008 financial crisis or not. In the South African context, there is also a debate on whether securitization played a role in the collapse of African Bank or not. Required: Considering the aforementioned complexity around the drawbacks and rewards of securitization, analyse the implication of securitization on financial stability making a reference to the 2008 subprime crisis. Your assignment should have four distinct sections ( a,b,c and d as outlined below) and should address but not be limited to the points listed under the sections. a) A clear introduction b) Literature discussion of securitization - A detailed discussion of the securitization process including its benefits and limitations; - A clear review of empirical literature: Review the empirical evidence (findings from previous studies) on securitization including the South African studies