Unlocking Financial Stability: The Crucial Role of Collateral Management

Wed, 27 Dec 2023 17:27:30 +0000

Collateral management is a comprehensive framework that involves the identification, valuation, and control of assets used to secure financial transactions. These assets, known as collateral, serve as a safety net, offering lenders a level of assurance and protection against potential default by borrowers. The collateralization process not only safeguards the interests of financial institutions but also facilitates the efficient flow of capital in the markets.