Russia’s Central Bank Calls to Consider Intellectual Property as Collateral Asset

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The head of the Bank of Russia, Elvira Nabiullina, noted that this was not the only subject that the Central Bank was prepared to discuss.

Nabiullina stated during the Council on Strategic Development and National Projects, that it was necessary to consider the possiblity of using intellectual property as a quality collateral asset.

"It is possible to move in that direction, but I would like to say that it's not just a matter of formal banking regulations. Why do we need collateral? If a borrower has not paid his loan, then the collateral can be sold and used to pay off creditors. This is why assessment of this collateral is even more important, and even more so when it involves intellectual property, a liquid asset, so that banks can quickly sell those assets,” Nabiullina said, adding that this was not the only decision, which the Central Bank was ready to discuss. 

“Right now, the liquidity of the market is very low, but you can start, for example, with traded widely-used software products, that can be sold and bought, which means, they can be used, so in terms of assessing and developing a liquid market for intellectual property, changing regulation, we are ready to work with the government to ensure that those areas where bank financing can be used, will be used,” Nabiullina added. 


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