2-25 The use of off-balance-sheet activities allows banks to practice regulatory tax-avoidance.

Name: 2-25 The use of off-balance-sheet activities allows banks to practice regulatory tax-avoidance.
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Off-balance-sheet activities (such as derivatives and securitization) are not always fully regulated by authorities, which means that some banks may use them to reduce their taxes or appear to be more financially sound than they actually are. This can be seen as a form of regulatory tax-avoidance.

2-25 the Use of Off-Balance-Sheet Activities Allows Banks to Practice