Today
Finastra announced that BNP Paribas, Natixis, Societe Generale have joined Natwest as customers of its
Fusion LenderComm platform. The blockchain network enables the sharing of information about syndicated loans, a market with $3.5 trillion of loans brokered in 2017.
In the case of syndicated loans, the agent bank usually manages the information relating to the share of money from syndicate banks including for drawdowns and repayments of revolving credits. The agent bank often communicates data to the syndicate via email or fax, and that’s done monthly at best. Hence it involves a lot of reconciliations and blackout periods when up-to-date data might be unavailable.
A permissioned distributed ledger, using R3’s Corda Enterprise means agent banks can share credit agreements, accrual balances, and position data with lenders in real time, directly integrated with the lending banks.
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