OCBC has launched a new securities lending programme, allowing eligible customers to lend idle securities to institutional borrowers and earn fee income, as the global securities lending market continues to expand.

The programme is powered by Citi’s Securities Lending Access (CSLA) platform and is now open to customers of OCBC Securities. It will be extended to private banking clients of Bank of Singapore later in 2026.

Securities Lending Programme Targets Idle Assets

Under the securities lending programme, retail and corporate customers of OCBC Securities, as well as Bank of Singapore clients, can lend out eligible securities while retaining the ability to sell them at any time. Customers will continue to receive dividends, coupon payments and bonus issues during the loan period.

At launch, OCBC Securities customers can lend out US and Hong Kong-listed shares. When the programme is extended to Bank of Singapore clients, securities from Singapore, Hong Kong, the US and Japan will be eligible initially.

Shares must be custodised with OCBC Securities or Bank of Singapore to qualify. Once a loan is confirmed, securities are transferred to an OCBC account before being on-lent to institutional borrowers.

The CSLA platform digitises the securities lending lifecycle and provides OCBC access to a global pool of institutional borrowers, including prime brokers and investment banks. These borrowers typically use securities for strategies such as short selling, arbitrage and hedging.

Growing Securities Lending Market

The launch comes amid strong growth in the global securities lending market. According to S&P Global Market Intelligence, the sector generated revenues of US$1.2 billion in December 2025, marking a 24 per cent year-on-year increase and the tenth consecutive month with revenues above US$1 billion. Full-year revenue rose 27 per cent to US$14.9 billion.

Kenneth Lai, Head of Global Markets at OCBC, said the collaboration with Citi allows the bank to offer securities lending services supported by established technology and market expertise.

“Securities lending brings benefits such as higher trading volumes, price discovery and market efficiency,” Mr Lai said, adding that customers can earn additional returns on their investment portfolios by choosing to lend their securities.

Citi said the collaboration represents a significant expansion of its CSLA platform in Asia. Ms Mridula Iyer, Asia South Head of Services at Citi, said integrating CSLA with OCBC introduces a new pool of securities to the lending market and expands Citi’s servicing of private and retail assets in the region.