However, in fact, it brought opacity with increasing complexity, and a large degree of uncertainty about the value of the securities because their evaluation became much more difficult. And the third ingredient was the increase in leverage. Financial institutions financed their portfolio with more and more external debt, thus increasing the rate of return on capital.
Probably the banks perceive the benefits in terms of reduced risk weight and release of exposure limit accruing from centralised clearing not commensurately attractive vis-a-vis the cost of margins. In the current thinking this approach becomes difficult to accept as this limited participation by banks reduces the netting benefits of centralised clearing.