Is there a regulation for banks to lend (accept as collateral via pledge/assignment) against interest, income from a financial instrument in a commercial or capital market lending?
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Banks typically do not lend against the future income of an instrument. The old rule of whatever can go wrong, will, applies here. This is especially true if the income may fluctuate or the instrument may fail.
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Banks typically do not lend against the future income of an instrument. The old rule of whatever can go wrong, will, applies here. This is especially true if the income may fluctuate or the instrument may fail.
