Securities-Based Lending

From Open Risk Manual


Securities-Based Lending (also Securities-Base Credit) is credit (loan) provision that is collateralized by securities or other marketable investment assets (securities) subject to the requirement that the securities collateralizing the loans be kept in collateral accounts with their broker-dealer affiliate.[1]

Issues and Challenges

  • Basides credit risk, includes market and collateral valuation risk


  1. FED, Bank Holding Company Supervision Manual