25-38 Besides reducing credit risks,an FI has an incentive to sell loans it originates for all of the following reasons EXCEPT to:

Question

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Decreasing core deposits is not a valid reason for an FI to sell loans it originates. Instead, FIs usually aim to increase their core deposits to enhance their liquidity and reduce their reliance on non-core funding sources such as wholesale funding. Geographically diversifying, lowering credit risks, generating reinvestment income, and lowering reserve and capital requirements are all valid reasons for an FI to sell loans it originates.

25-38 Besides Reducing Credit Risks,an FI Has an Incentive to Sell