A banking organization's management
should ensure that documents governing securitizations it sponsors do not
include any covenants related to supervisory actions or thresholds. Effective
immediately, the use of covenants that provide for the early amortization of a
securitization or compel the transfer of servicing as a result, directly or
indirectly, of the occurrence of a supervisory action or event will, under
appropriate circumstances, be criticized as an unsafe and unsound banking
practice. Moreover, banking organization management is encouraged to amend,
modify, or remove these covenants from existing transactions. Any impediments a
banking organization may have to taking such actions should be documented and
discussed immediately with its Reserve Bank.
单选题
Securitization is an unsafe and unsound banking practice.
【正确答案】
B
【答案解析】从第二句Effective immediately, the use of covenants,...be criticized as an unsafe and unsound banking practice可知是covenants(契约条款)而不是securitization(证券化)被指责为一种不安全、效果不好的举动。
单选题
The banks will be punished by the Reserve Bank if they refuse to cooperate.
【正确答案】
C
【答案解析】文中最后一句只说Any impediments a banking organization may have to taking such actions should be documented and discussed immediately with its Reserve Bank.并没有指出银行不合作会受到他的储备银行的处罚。
单选题
The word "covenant" in this passage means commercial actions.
【正确答案】
B
【答案解析】从第一句末尾any covenants related to supervisory actions or threshold可以看出covenants指不涉及监管行为的各种条款，而非商业行为。
单选题
The commercial banks mentioned in the passage can not have any other trade with companies except the credit action.