The securities lending and broader securities finance market has long been a cornerstone of the global financial system. By facilitating the temporary transfer of securities, the market underpins various activities, including market making, short selling, collateral...
Financial markets are relentlessly pushing the boundaries of settlement cycles. When this happens, we see a ripple effect that can transform everything from institutions to regulation. China is at the forefront, leading with its T+0 real-time settlement system. India...
In 2014, the Liquidity Coverage Ratio (LCR) was a much-needed response to the liquidity crises that exacerbated the global financial meltdown. The regulation requires banks to hold enough high-quality liquid assets (HQLA) to cover net cash outflows during a 30-day...
Think of an oversized intraday liquidity buffer as a heavy anchor—both protective and restrictive. While the anchor ensures stability, too much weight hinders your bank’s agility and responsiveness. A 2023 report from the Basel Committee indicated that the world’s...
Article written with guest author: Sridhar Aiyangar* / Group Head, Balance Sheet and Liquidity Management, Bank ABC Think of your bank as a high-performance engine, built for speed and endurance. However, even the most powerful engine can’t deliver optimal performance...
Imagine setting sail to discover hidden treasure. You have a map in hand, but it’s outdated and filled with vague warnings like “Here there be dragons.” Would you trust it to lead you safely and swiftly to riches? Likely not. The same principle...
