Oversea-Chinese Banking Corporation (OCBC) (SGX:O39) is creating a specialized securities financing unit to serve its institutional clientele.

The new division will enable institutional customers to generate fee-based revenue by lending their underutilized securities portfolios. Clients of the bank, along with those of its subsidiaries OCBC Securities, Bank of Singapore, and Great Eastern, will gain access to this service for lending their equity and fixed income holdings. OCBC emphasizes that it is the pioneering Singaporean bank to provide such an offering.

"Efficient access to liquidity and optimal capital deployment have become paramount, particularly amid heightened market volatility," stated Kenneth Lai, Head of Global Markets at OCBC.

Lai noted a significant increase in institutional client demand for securities financing. "The creation of a dedicated team is therefore a well-timed strategic milestone as we aim to expand our securities financing operations across the region."

This new unit will operate within the bank's global markets division under the leadership of recent hire Jansen Chua. OCBC's global markets division has nearly doubled its contribution to the bank's operating profit year-over-year as of September 30.

Chua previously served as Senior Managing Director and Head of Financing Solutions for Asia Pacific at State Street Bank and Trust Company before joining OCBC. He commenced his role on January 2 and reports directly to Lai.