Collateral management has become more important due to increased regulation and market volatility. New regulations like Basel III have led to a ten-fold rise in collateral exchanged between 2000-2008. Effective collateral management systems can help financial institutions reduce counterparty risk, enhance returns through product innovation, and provide borrowers with access to cheaper funds and freed up credit lines. Such systems provide efficient management of collateral through features that evaluate, mitigate, allocate, and communicate about eligible collateral to simplify operations and manage market, liquidity, legal and settlement risks.

1. CHANGING PHASES
BENEFITSCOMPONENTS
$
EFFICIENT
COLLATERAL MANAGEMENT
90% Face
regulatory
changes
35% Face
administrative
burdens
Fall of
Lehman
brothers & Bear
sterns
(2008)
New
Regulations
BASEL III,
CRD IV, EMIR,
Dodd frank
act
Rise in volume
of collaterals
exchanged
(2000-08)
MATURITY
PERIOD
10 - FOLD
RISKS
LIQUIDITYCORRELATION
TO EXPOSURE
VOLATILITY CREDIT
RATING
Reduce counter party risk
Enhance returns
Product innovation
LENDER
COLLATERAL
MANAGEMENT
SYSTEM
Access to cheaper funds
Free up credit lines
BORROWER
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For More Information
marketing@niit-tech.com/www.niit-tech.com
Operations
Market & liquidity
Legal
Settlement
Bi-Party/Tri-Party
Collateral Trading
Re-hypothecation
Repos
FEATURES
Evaluation Mitigation
Allocation
Communication
Collation
COLLATERALS : Eligibility Criteria