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

Podcast

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.