Answers:
· Perfect matching of assets and liabilities in the books of accounts, as loan assets are liquidated and repayment of amount is utilized to pay investors who have SPV.
· As compared with other forms of capital, securitization involves less cost which makes it less costly and a more affordable source of finance.
· Securitization helps in increasing Capital Adequacy Ratios (CAR) as the loan assets are off-loaded from the balance sheet.