The last word: Basel III

The leading question

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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 t