Efficient Collateral Management: Safeguarding Financial Stability

Fri, 05 Jan 2024 17:28:18 +0000

At its core, collateral management involves the identification, valuation, and monitoring of assets provided as security in financial transactions. These assets, known as collateral, act as a guarantee that lenders can seize and liquidate in the event of a borrower's default. The collateral not only protects the lender but also facilitates access to financing for the borrower by reducing credit risk.