1. #1
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    what is eligibility for the post of financial collateral in the field of credit management?

    what is eligibility for financial collateral in the field of credit management in credit and cooperative societies?





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  3. #2
    nikhilrocker
    Join Date
    Jun 2011
    Posts
    264

    Re: what is eligibility for the post of financial collateral in the field of credit management?

    Collateral eligibility is one of the key steps in a stable trading relationship. Since the purpose of collaterization is to secure or insure all or a portion of the counterparty credit risk in a trading relationship, eligible collateral must be easily converted into economic value when needed (i.e. when a counterparty defaults).

    Basic Requirements for Collateral Eligibility :-

    Liquid:- Securities used as collateral must be highly liquid (marketable) so they can be sold for cash in the open market on short notice. This may also apply to certain currencies as well -- USD and EUR are liquid, but Turkish Lira may not be.




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