In the modern banking sector,
Collateral management has established itself as collateral and is mainly used for various categories of transactions.
Collateral management has evolved rapidly in the last 15β20 years with increasing use of new technologies, competitive pressures in the institutional finance industry, and heightened counterparty risk from the wide use of derivatives, securitization of asset pools, and leverage. As a result, collateral management is now a very complex process with interrelated functions involving multiple parties.