PASLA: Regulatory harmonisation remains a hurdle for balance sheet management
08 March 2019 Hong Kong
Image: Shutterstock
Challenges from a lack of regulatory harmonisation remain the biggest hurdle today in terms of managing the balance sheet, according to delegates at the 15th Annual Pan Asia Securities Lending Association (PASLA) Conference.
During the panel session, delegates were asked via interactive survey what they felt were the biggest challenges affecting the management of the balance sheet.
Following on from the top answer, which was the lack of regulatory harmonisation at 35 percent, the second biggest challenge was the changing regulatory environment at 27 percent, followed by internal technology and structural considerations and restrictions at 19 percent and finally the development of systemic industry solutions at 8 percent.
A further 12 percent of delegates voted for ‘all of the above’ suggesting that all the challenges listed were affecting balance sheet management in some way. Panellists also agreed that all challenges were a hurdle when managing the balance sheet.
One panellist said you have to “manage challenges the best you can”. Another explained that while tools and resources are good to help overcome these challenges, “tools are only as good as the input”.
A panellist said: “Integrity is also an important point as well.”
Challenges have both a direct impact on both the buy side and sell side, according to the panel.
One panellist suggested that to overcome such challenges, firms need to focus on what resources work best for the business.
During the same panel, a second question was given to delegates, asking “Of the following solutions to capital constraints, which is the most important to you?”
Both synthetic financing and specific counterparty selection come out on top, each receiving 27 percent of votes. Also on the list, was central counterparties at 24 percent and pledge at 21 percent.
During the panel session, delegates were asked via interactive survey what they felt were the biggest challenges affecting the management of the balance sheet.
Following on from the top answer, which was the lack of regulatory harmonisation at 35 percent, the second biggest challenge was the changing regulatory environment at 27 percent, followed by internal technology and structural considerations and restrictions at 19 percent and finally the development of systemic industry solutions at 8 percent.
A further 12 percent of delegates voted for ‘all of the above’ suggesting that all the challenges listed were affecting balance sheet management in some way. Panellists also agreed that all challenges were a hurdle when managing the balance sheet.
One panellist said you have to “manage challenges the best you can”. Another explained that while tools and resources are good to help overcome these challenges, “tools are only as good as the input”.
A panellist said: “Integrity is also an important point as well.”
Challenges have both a direct impact on both the buy side and sell side, according to the panel.
One panellist suggested that to overcome such challenges, firms need to focus on what resources work best for the business.
During the same panel, a second question was given to delegates, asking “Of the following solutions to capital constraints, which is the most important to you?”
Both synthetic financing and specific counterparty selection come out on top, each receiving 27 percent of votes. Also on the list, was central counterparties at 24 percent and pledge at 21 percent.
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