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Securitization of loans

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What are the principal uses of commercial bank funds? Major sources of funds?

Explain how securitization of loans helps a banks and their customers.

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This solution is comprised of a detailed explanation of commercial bank funds as well as how securitization of loans helps banks and their customers.

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What are the principal uses of commercial bank funds? Major sources of funds?

Following are the principle use of commercial bank funds:
(i) It facilitates saving and capital formation.
(ii) Offers loan to the consumers and firms for consumption and investing purposes respectively.
(iii) Helps the firms in fulfilling their emergent financial ...

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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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