Collateral Management Benchmarking

G-14 Investment Bank

Client Requirement:

The bank was is in the process of reviewing and enhancing its collateral management operations and systems infrastructure.

As part of this programme of work, the bank wished to understand how its collateral management environment compared to market best practice covering organisational design, business process and supporting technology. In addition, the bank was keen to investigate potential future requirements driven by regulatory changes and how other institutions were planning for this.

Our Engagement: 

InteDelta was engaged to benchmark the client’s collateral management environment against market practice and advise the client on it future state operating model. The results of the benchmarking exercise were to be used to:

  • Position the bank with regards to current collateral management practice;
  • Evaluate approaches to collateral management for centrally-cleared derivatives;
  • Inform the bank’s evolving collateral management strategy, focusing attention on key development areas and priorities.

Our Approach:

Utilising our collateral management subject matter expertise and our extensive network across the financial services sector we produced and conducted a detailed study. This entailed liaising with key internal stakeholders to understand the bank’s internal collateral management environment, conducting interviews with peer group banks in Europe and North America and subsequently analysing the results of the client’s process relative to the benchmark established by the peer institution interviews.

In addition, we also surveyed a select group of the bank’s clients to understand their level of satisfaction with the bank’s collateral management process and the evolution of requirements from broker dealers in the context of cleared derivatives.

Business Benefits:

Through leveraging InteDelta’s expertise and proven analysis methodology, the client ensured that the business and functional design of its collateral management environment met best practice standards and would be adaptable to the requirements of the central clearing regulations.

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