The five biggest US investment banks will need to post as much as $200bn (€148bn) in extra collateral to cover exposure to over-the-counter derivatives should proposals to establish central counterparty clearers go ahead, according to new research by an economist at the International Monetary Fund.

Bank of America Merrill Lynch, Citigroup, Goldman Sachs, JP Morgan and Morgan Stanley will each need to make good expected future collateral requirements from central counterparty clearers, a working paper by IMF economist Manmohan Singh published earlier this week has argued.