In commercial banking and structured finance, PTC stands for Pass-Through Certificate. This financial instrument represents a beneficial interest in a pooled collection of assets, such as consumer loans, auto receivables, or credit card debt, packaged for securitization. Commercial banks and financial institutions utilize PTC structures to transfer credit risk off their balance sheets, enhance liquidity metrics, comply with regulatory capital adequacy requirements, and generate fee-based income by servicing the underlying loan portfolios on behalf of institutional certificate holders.