China develops own master agreement
BEIJING – Chinese banks using the country’s Pledge Master Agreement, China’s domestic repo agreement issued first in 1999 by the People’s Bank of China (PBC), still do not have clauses in their contracts that require the collateral seller to top up collateral when its value falls to protect against the exposure of the collateral buyer.
This is the reason Chinese banks often struggle to get to grips with mark-to-market collateral requirements linked with the global master repurchase agreements
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