A process whereby a bank can sell a parcel of its existing home loans to investors in the financial markets is best described as:

Question

Quizplus · Accepted Answer

Securitisation is a process where a bank can bundle together a group of loans, such as home loans, and sell them off as securities to investors in the financial markets. This allows the bank to free up capital and reduce risk on its balance sheet while also providing investors with an opportunity to invest in a diversified portfolio of loans.

A Process Whereby a Bank Can Sell a Parcel of Its