Study reveals potential for equity capital savings

A Clearstream-sponsored study by Elton-Pickford shows how banks could reduce their Basel III equity capital requirements by up to 20 percent through collateral optimisation.

The new study “Collateral optimisation - the value chain of collateral: Liquidity, cost and capital perspectives” by Clearstream and Elton-Pickford highlights a market need for a collateral value chain to meet regulatory requirements and
optimise balance sheet usage. The study defines this value chain as a succession of processing steps which ensures the availability, mobility and liquidity of a security.