LM-8.1 LM-8.1 Overview
LM-8.1.1
The ready availability of assets that banks can use as collateral to obtain funding by means of secured borrowing (e.g. repo) mitigates liquidity risk. Therefore, banks must allocate sufficient resources to ensure efficient and effective management of collateral in their liquidity risk management process.
August 2018LM-8.1.2
Collateral management must aim at optimising the allocation of collateral available for different operational needs, across products, business units, locations and currencies. It must be based on a prioritisation of needs and an awareness of the opportunity cost of its use, in both normal and stressed times.
August 2018
