A Study On Risk Management Of Collateral In Securities Borrowing And Lending Business

Securities lending business risks including credit risk,liquidity risk,market risk,legal risk,etc.,to effectively guard against risks,establish,with emphasis on the collateral management,strict risk management system and system security risk of securities lending business measurable controllable is very important.In 2007 after the outbreak of the financial crisis,to restore investor confidence and global regulatory capital and liquidity of financial institutions to put forward the higher request,all financial institutions need to use more collateral when trading,market participants on the efficiency of collateral management,and the expansion of collateral to use requirements higher and higher,the complexity of the collateral management business and fine degree is also increasing.Overseas markets creating the three guarantees former management business,through independent,professional third party institution in order to guarantee collateral management,better in order to guarantee the management and reduce risk,improve the efficiency of the use of collateral,at the same time,reduce artificial.operation cost and cash cost.At the same time,through the establishment of across different varieties,market,cross-border eligible collateral pool,improve the liquidity of market participants,for market participants to timely and reasonable configuration of high-quality collateral.In the context of the increasingly strict international regulatory rules,the management of the tripartite management of products is very rapid.Compared with the overseas market,at present our country capital market collateral has begun to take shape,but still more in collateral bilateral management-collateral for parties to collateral provider of collateral,market participants collateral requirements needed to participate in various business failed to integrate,valuation of collateral management scientific frequency,refinement,asset utilization efficiency and management level is relatively low.As the capital market opening to the outside world,more and more domestic and overseas investors for each product,its business framework has been gradually cannot meet the endless market products and system innovation of collateral management of safety,high efficiency.In this background,this article first through the collateral management practice in securities lending business in all kinds of risk,analysis the risk in collateral management,then chose domestic margin collateral management business as an example,the empirical study on collateral management at the core of risk management index collateral conversion rate,to quantify the risk measurement,and at last bring forward comments and suggestions of collateral management.