18-112 Over the past 30 years in the DI industry

Question

Quizplus · Accepted Answer

All options listed are correct and can be seen as trends in the DI industry over the past 30 years. Securitization has allowed for a more liquid loan portfolio (A), and changes in regulations such as Basel III have allowed for lower amounts of liquid assets needed to manage withdrawal risk (B). In addition, changes in technology and an increase in competition have led to more opportunities for DIs to raise funds that are not deposit-related (C). Finally, DIs have managed liabilities such as offering longer-term deposit accounts to reduce withdrawal risk (D).

18-112 Over the Past 30 Years in the DI Industry