What is the purpose of a dealer reserve in indirect lending? When is a bank at risk

Question:

What is the purpose of a reserve in indirect lending? When is a bank at risk with indirect loans?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...