With Promnet Repo®, financial institutions can strengthen relationships with business and institutional customers while enjoying more control over cost of funds and liquidity.
Move Deposits and Securities Off Balance Sheet
Using Promnet Repo, a financial institution can
- Avoid turning away valuable customers whose deposits may otherwise negatively impact its balance sheet
- Offer customers daily liquidity, the opportunity to earn a return, and the safety of having their funds backed by U.S. Treasuries (to 101-102%) or by Agency MBS (to 103%)
- Protect lucrative customer relationships
- Enjoy fee income—your financial institution can receive a fee based on volume
How Promnet Repo Works
- Promontory Network members can easily access the repo transaction platform via the Transaction & Reporting Portal.
- A Relationship Institution enters into a Repurchase Agreement as agent for its customers.
- The custodian, BNY Mellon, holds securities on the customer’s behalf and sends or receives funding by wire.
- For the Relationship Institution, this is an off balance sheet transaction—funds and securities do not reside on its balance sheet and it retains the customer relationship.
Promnet Repo can help banks, brokerage firms, and other financial institutions to build valuable relationships and manage liquidity. To learn more contact us today