Over the past 30 years in the DI industry

Question

Quizplus · Accepted Answer

All of the options are correct.

A) Increased securitization has allowed loans to be packaged and sold, thereby increasing liquidity of the loan portfolio.

B) Advances in technology and financial markets have allowed for more precise management of withdrawal risk, allowing for lower amounts of very liquid assets to be held.

C) DIs now have access to funding sources besides traditional deposit taking, such as wholesale funding and securitization.

D) DIs actively manage their liabilities to reduce withdrawal risk, such as by staggering maturities and using callable debt.

Over the Past 30 Years in the DI Industry