system allowing banks to diversify their loan portfolios via exchanging loans

Abstract

A method of measuring concentration capital in a bank's loan portfolio and facilitating exchanging of loans, is described. Banks exchange their loans with each other in order to reduce their portfolio's concentration capital and keep within their lending limits. The banks exchange loans in their portfolio using Web pages over the internet or via spreadsheets. The present invention also allows a bank to originate a loan with another bank, thereby avoiding concentration capital and breaching credit limits The present invention also facilitates the securitization of loans from their portfolio into vehicles that include Collateralized Debt Obligations, thereby again reducing concentration capital and adhering to credit limits. By exchanging loans, the diversification of the bank's portfolios protects the bank from the chance of a large financial “systemic event”, industry category, or group of borrowers, to which the bank would currently be exposed. It also reduces the concentration capital needed.

Dependencies are inferred from the claim text.