RiskTech Forum

Collateral Management - Unlocking the potential in collateral

Posted: 8 August 2011

The global collateral management market is worth in excess of €10 trillion. There are, however, numerous inefficiencies reflecting operational difficulties and market constraints which undermine the banking sector’s ability to optimise the value and use of collateral.

We estimate that internal fragmentation (i.e. inefficiencies specific to individual banking institutions) of the global collateral management market costs more than €4 billion annually.

External costs and potential savings are more difficult to estimate given that they are dependent upon future regulation, but our survey suggested that cost savings could well be considerable.

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