Jump to Content
ABA: The American Bankers Association
Jump to Secondary Nav Jump to Secondary Nav

Securities-Based Lending for Banks: Balance Sheet Shock Absorber, Untapped Growth Driver


Securities-Based Lending for Banks: Balance Sheet Shock Absorber, Untapped Growth Driver

Brought to you by: Total Bank Solutions

In this episode: 

Michael Musial, Managing Director, Total Bank Solutions
Phoebe Papageorgiou, VP, ABA

Episode Summary

A growth opportunity surprisingly untapped by banks, securities-based lines of credit (SBLOCs) offer differentiating value to banks and clients alike. As a loan asset class SBLOCs react differently to interest rate movements than traditional lending options, affording bankers an opportunity to protect their spread even in ultra-low rate environments. They provide clients fast and easy access to liquidity for a variety of non-purpose short and long- term funding needs - without the tax consequences and opportunity costs of actually liquidating securities. By automating the end-to-end loan administration process and reducing the need for human intervention, SBLOCs are fast and inexpensive to originate, underwrite and monitor making them a highly scalable vehicle for increasing bank client wallet share and winning new business.


total bank solutions
Total Bank Solutions

Total Bank Solutions (TBS) is a privately held technology firm founded to serve the needs of banks and financial intermediaries. Leveraging proprietary technology, our FDIC insured deposit program (IDP) is designed to provide clients with the benefit of extended FDIC insurance and for participating banks, a stable, diversified and cost-effective source of deposit funding. Through our subsidiary TBS Bank Monitor, we offer clients the ability to conduct surveillance of all FDIC insured institutions. TBS Bank Monitor provides enterprise grade analytics and privileged process support for risk surveillance, compliance testing and investment research through an online subscription service. For more information about TBS, visit www.totalbanksolutions.com For more information about TBS Bank Monitor, visit http://us1.tbsbankmonitor.com/www/index.asp