Banking General Awareness Tax and Budget Question Bank Tax and Budget

  • question_answer
    Securitisation is

    A) non-performing loans are acquired from banks and financial institutions at a discounted value and security receipts issued to them so that these loans are removed, from their balance sheet enabling them to reduce the provision in respect of such loans and improve profitability

    B) converting the illiquid loans of banks and financial institutions by securitization companies into tradable securities, after they are acquired and sold to the investors

    C) a process of acquisition of non-performing loans from banks by a securitisation company and covert them into tradable securities and sold to the investors

    D) All of the above

    E) None of the above

    Correct Answer: D


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