Publication Details
Abstract
The evolution of collateral structures in commercial banking has become a pivotal element in enhancing credit risk management and financial stability. This study provides a comparative analysis of innovative collateral mechanisms adopted by commercial banks across selected OECD countries, with a focus on how structural, regulatory, and market-specific factors shape these practices. Drawing on data from central bank reports, financial statements, and regulatory frameworks between 2010 and 2024, the research identifies emerging models such as dynamic collateralization, blockchain-based asset pledging, and cross-border collateral pooling. Using a mixed-method approach, including econometric modeling and qualitative case analysis, the study evaluates the efficiency, transparency, and systemic risk implications of these innovations. The findings reveal significant heterogeneity among OECD members, driven by differences in legal infrastructure, capital market depth, and digital readiness. The study concludes that innovative collateral structures can substantially improve liquidity access and credit resilience, but their benefits depend on harmonized regulation and robust technological governance. Policy recommendations are offered to support balanced innovation in collateral frameworks that promote both financial inclusion and systemic stability.