After the outbreak of the subprime crisis many financial institutions painfully experienced the flaws in their risk management in securities based lending, if not with actual losses then with extraordinary operational expenses.
The demand for securities based lending may be plunged currently, however collateralized lending will continue to grow as soon as investors risk appetite starts to awaken. It is an essential service for active investors and yields a highly attractive margin improvement for the bank. A state-of-the-art risk management enables to offer competitive but truly risk-adjusted conditions.
Deloitte offers state-of-the-art Expected Loss models to bring quantitative risk measurement to your securities based lending, thus ensuring consistent Loan-to-Values assignments throughout your business. Based on sound qualitative and quantitative methodologies, Deloitte offers support in structuring and optimizing your risk management for securities based lending through our profound knowledge and comprehensive expertise in the implementation of tailored end-to-end solutions.