Why Do Banks Engage in Securitization? What Are the Advantages

question 22

Essay

Why do banks engage in securitization? What are the advantages of securitization?

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Definitions:

Dual Distribution

A distribution strategy where a company sells products through multiple channels, often both directly to consumers and through intermediaries.

Vertical Integration

A business strategy where a company owns or controls its suppliers, distributors, or retail locations to control its value or supply chain.

Legal Prosecution

The process of pursuing legal action against an individual or entity accused of breaking the law, typically involving formal charges and a court trial.

Corporate Vertical

A term describing a company's ownership and control over multiple stages of production or distribution in the same industry.