Supporting Financial Institutions
Black Diamond Group partners with banks, non-bank lenders, and alternative finance providers to deliver capital-efficient solutions, risk transfer mechanisms, and balance-sheet optimization structures. We understand the regulatory, capital, and liquidity constraints facing financial institutions and design transactions that align with Basel III, IFRS 9, and institutional risk frameworks.
Whether you require synthetic risk transfer, portfolio monetisation, or credit enhancement for your lending book, we work with you to structure compliant, cost-effective solutions.
Solutions for Institutions
Capital Relief & Synthetic Risk Transfer
Reduce risk-weighted assets (RWA) through synthetic securitisation, credit default swaps, or funded risk transfer structures. Optimise regulatory capital ratios while retaining client relationships.
Typical clients: Commercial banks, challenger banks, non-bank lenders seeking CET1 relief.
Portfolio Monetisation & Whole Loan Sales
Liquidity solutions for performing loan portfolios, trade receivables books, or structured credit assets. True sale or synthetic structures depending on accounting and regulatory requirements.
Typical clients: Banks with concentrated exposures, fintech lenders, asset-based lenders.
Risk Participation & Syndication
Share credit risk on large exposures through funded or unfunded participation agreements. We coordinate with institutional investors, insurance companies, and other financial institutions.
Typical clients: Regional banks, trade finance banks, specialty lenders with single-name concentration.
Credit Insurance for Lending Portfolios
Insure portfolios of trade receivables, invoice finance books, or supply chain finance exposures. Reduce credit risk and potentially achieve capital relief under CRM (credit risk mitigation) rules.
Typical clients: Invoice finance companies, supply chain finance platforms, working capital lenders.
Example Use Cases
Case 1: Regional Bank Capital Relief
Challenge: UK regional bank with £500 million SME loan portfolio approaching regulatory capital limits. Unable to grow lending book without raising expensive Tier 1 capital.
Solution: Structured synthetic securitisation with credit insurance cover on senior tranches. Achieved 40% RWA reduction under significant risk transfer (SRT) framework, freeing capital for new lending.
Case 2: Fintech Lender Portfolio Sale
Challenge: Non-bank fintech lender with £100 million performing receivables portfolio. Required immediate liquidity to fund growth pipeline but wanted to maintain servicing relationship with borrowers.
Solution: Arranged whole loan sale to institutional investor with servicing retained by originator. Structured as true sale with deconsolidation, generating immediate liquidity and performance fees.
Case 3: Trade Finance Bank Risk Participation
Challenge: Trade finance bank with €50 million single-buyer exposure in emerging market. Exceeded internal concentration limits and regulatory large exposure thresholds.
Solution: Coordinated 60% funded risk participation with two institutional investors and credit insurance on remaining 40%. Bank reduced exposure to acceptable level while maintaining client relationship.
Regulatory & Capital Considerations
Basel III / CRR Compliance
All structures designed to comply with Capital Requirements Regulation (CRR), Significant Risk Transfer (SRT) criteria, and regulatory capital treatment guidance. Legal opinions obtained where required.
IFRS 9 & Derecognition
Portfolio sales and synthetic structures assessed for derecognition under IFRS 9. We coordinate with external auditors to ensure accounting treatment aligns with commercial objectives.
Credit Risk Mitigation (CRM)
Credit insurance and guarantee structures designed to qualify as eligible CRM under CRR, enabling capital relief through reduced risk weighting or probability of default.
Securitisation Regulation
Compliance with EU Securitisation Regulation, STS (Simple, Transparent, Standardised) frameworks where applicable, and retention requirements for originators.