After entering the securitization business, Delta Bank increases its cash efficiency by selling off the...

Vendor: GARP
Product: 2016-FRR
Update on: Jul 28, 2025
Questions: 387

GARP 2016-FRR Question Answer

After entering the securitization business, Delta Bank increases its cash efficiency by selling off the lower risk portions of the portfolio credit risk. This process ___ return on equity for the bank, because the cash generated by the risk-transfer and the overall ___ of the bank's exposure to the risk.

Increases; increase;

Increases; reduction;

Decreases; increase;

Decreases; reduction;