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Risks of SRTs and Financial Transparency
This chapter explores the IMF's concerns about the quality of loans banks are transferring to investment funds, focusing on the trend of offloading riskier loans in pursuit of higher returns. It also highlights the systemic risks posed by Structurally Re-insured Transactions (SRTs), emphasizing the lack of transparency in the market and the potential for a financial crisis if banks mismanage their capital.