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German securities lending competition increases
08 May 2012
As one US bank reveals plans to hugely expand its agency lending business in Germany, Stephanie Baxter considers the impact on the market
The German securities finance business has historically been dominated by local banks, which, with a leading position in custody and knowledge of the country’s restrictive and complex laws, have made it one of the most difficult markets in Europe for outsiders to penetrate.
But that domination may about to be broken, following BNY Mellon’s anticipated announcement that it is looking to expand its agency lending business and reach deeper into Germany’s plentiful pool of assets.
BNY Mellon is now one of the top three custodians in the German market but is a minnow in agent lending. Following its acquisition of the German asset servicing business of BHF Bank for $343m in 2010, Jeannine Lehman, head of client relations for Emea securities lending at BNY Mellon, says the bank now has the necessary infrastructure in place to increase its lending business.
“We now have the necessary infrastructure...
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