The strong performance of commercial banks during the decade before 2007 was due to

Question

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The ability of banks to shift credit risk from their balance sheets to financial markets, such as through the use of securitization, was a major factor in their strong performance before 2007. This allowed banks to make more loans and earn more profits without having to worry about holding on to the credit risk. The stability of interest rates, the contraction or growth of banks and thrifts, and credit unions were not as significant in their performance during this period.

The Strong Performance of Commercial Banks During the Decade Before