Term:
Securities lending
Definition:
Securities lending refers to an arrangement whereby a security holder transfers securities to a “borrower,” subject to the stipulation that the same (or similar) securities be returned on a specified date or on demand. “Full, unfettered ownership” is transferred to the “borrower,” but the risks and benefits of ownership remain with the original owner. The practice is undertaken by owners of securities to raise the return on the securities and/or to reduce the cost of custody
Domain:
Finance
Source:
Monetary and Financial Statistics Manual, IMF, Washington, 2000, para. 149