Banks eye intangible assets as collateral

Several US banks want to tap the value of the intellectual property holdings of their borrowers as a way of trimming their capital requirements, which are to be made tougher under Basel III rules.

Under the terms of many loans, banks have the right to seize a borrower's patents and trademarks as part of a foreclosure proceeding. But these intangible assets cannot generally be counted towards the loan's security for regulatory capital assets because they are considered too difficult to value ... READ MORE

Released by the Financial Times - 11 June 2012