Securities Lending Models

This question tests your understanding of how securities lending is structured across different business models in financial institutions. You need to know the role of each participant, how the lending function is set up, and why ownership, custody, and operational scale matter when securities are lent out to borrowers. Interviewers ask this because FIG candidates are expected to understand the revenue, servicing, and balance sheet implications of custody, asset management, and prime brokerage relationships. It also checks whether you can distinguish between an in-house lending program, a bundled custodian model, and an external lending provider, which are common industry setups.