The last word: Basel III
What will be the impact of Basel III on the securities lending market?
Peter Economou, chief risk officer, eSecLending
As a result of Basel III, institutions must not only increase the amount of capital held on balance sheets, but also increase the quality of the capital.
The impact of Basel III on a bank managed securities lending programme, while not yet completely defined, is expected to require borrower indemnification to move on balance sheets, requiring an allocation of capital and thus a cost of capital charge. Banks will need to decide whether they are
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