Liquidity management: A more centralized (branch) model would allow global banks with wholesale operations to manage liquidity more efficiently at the group level, allowing them to transfer liquidity where it is most needed (in normal times, as well as at times of stress, absent barriers placed on transferring funds across jurisdictions in excess of the regulatory requirements). A cross-border bank might also benefit from consolidating its collateral holdings in a single pool, which allows an affiliate with poor access to eligible securities to receive liquidity by collateralizing the “excess” provided by other affiliates. For global retail banks that tend to.
