Response to the following questions:
1. What are the three levels of regulatory taxes faced by FIs when making loans? How does securitization reduce the levels of taxation?
2. What role do reserve requirements play in the decision to sell a loan with or without recourse?
3. How will a move toward market value accounting affect the market for loan sales?
4. How do loan sales and securitization help an FI manage its interest rate and liquidity risk exposures?
If possible, please give examples to better understand your response.