TY - BOOK ID - 11271033 TI - Counterparty Risk, Impacton Collateral Flows and Role for Central Counterparties AU - Aitken, James. AU - Singh, Manmohan. AU - International Monetary Fund. PY - 2009 SN - 1451917473 1462364845 9786612843853 1282843850 1451873204 1452774285 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and banking -- United States. KW - Credit -- Risk assessment. KW - Finance -- United States. KW - Risk management -- United States. KW - Finance KW - Business & Economics KW - Investment & Speculation KW - Credit KW - Risk management KW - Banks and banking KW - Risk assessment. KW - Borrowing KW - Money KW - Loans KW - Banks and Banking KW - Finance: General KW - Money and Monetary Policy KW - Industries: Financial Services KW - International Finance Forecasting and Simulation KW - Portfolio Choice KW - Investment Decisions KW - International Financial Markets KW - Financial Institutions and Services: Government Policy and Regulation KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - General Financial Markets: General (includes Measurement and Data) KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Monetary economics KW - Banking KW - Collateral KW - Currencies KW - International liquidity KW - Derivative markets KW - Financial institutions KW - Asset and liability management KW - Financial markets KW - Central counterparty clearing house KW - International finance KW - Derivative securities KW - Clearinghouses KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:11271033 AB - Counterparty risk in the United States stemming from exposures to OTC derivatives payables (after netting) is now concentrated in five banks?Goldman Sachs, JPMorgan, Bank of America, Morgan Stanley and Citi. This note analyzes how such risks have shifted over the past year. We estimate that the adverse impact of counterparty risk on high-grade collateral flows and global liquidity due to decrease in rehypothecation, reduced securities lending, and hoarding of cash by major banks is at least $5 trillion. In order to mitigate counterparty risk, there have been regulatory initiatives to establish central counterparties (CCPs). From a policy perspective, counterparty risk remains large at present and recent experience has shown that OTC derivative positions are not supported by sufficient capital, constituting a major risk for participants in this market. ER -