As U.S. banks face stricter capital standards due to Basel III regulations, some are exploring...

|By:, SA News Editor

As U.S. banks face stricter capital standards due to Basel III regulations, some are exploring whether they can use intangible assets held by their borrowers, such as patents and trademarks, as collateral in order to cut the risk weight of their loans and overall capital requirements. Banks have always had the right to sieze such assets in a foreclosure, but aren't able to count them against the loans security due to the difficulty in calculating a firm value.