Securitized assets cannot be removed from a bank's balance sheet until they mature.

Name: Securitized assets cannot be removed from a bank's balance sheet until they mature.
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Question

Quizplus · Accepted Answer

Securitized assets can be sold to investors and removed from a bank's balance sheet, even before they mature. This is the whole purpose of securitization - to convert illiquid assets into tradable securities that can be sold to other investors, thereby freeing up capital for the bank to use for other purposes.

Securitized Assets Cannot Be Removed from a Bank's Balance Sheet