In securitisation, ADI stands for Authorised Deposit-taking Institution. ADIs are banks, building societies, and credit unions that are authorised by the government to accept deposits from the public. ADIs are also subject to certain regulations and requirements, such as capital adequacy requirements and liquidity requirements. ADIs are often involved in securitisation transactions. They may act as originators of securitisation transactions, which means that they may originate the loans or other financial assets that are securitised.
ADIs may also act as investors in securitisation transactions, which means that they may purchase securitisation notes. ADIs are involved in securitisation for a number of reasons. Securitisation can allow ADIs to free up capital, which can be used to make new loans or to
invest in other assets.
Securitisation can also allow ADIs to transfer credit risk to other investors, which can reduce the risk of losses for the ADI. Here are some additional details about ADIs in securitisation: ADIs are banks, building societies, and credit unions that are authorised by the government to accept deposits from the public. ADIs are often involved in securitisation transactions as originators or investors. Securitisation can allow ADIs to free up capital, transfer credit risk, and invest in other assets. ADIs are subject to certain regulations and requirements, such as capital adequacy requirements and liquidity requirements.