Which of the following is true about securitization and regulatory taxation for an FI?

A) Since the loans are no longer on the balance sheet of the FI then there is no need post more capital to protect against default risk.

B) Reserve requirements will be reduced if liabilities are also reduced.

C) Deposit insurance will be reduced if liabilities are also reduced.

D) All of the above are true.

E) None of the above are true.