More people need it, there might not be enough of it, and much of it is locked up and cannot get to where it needs to go. Collateral is in demand and the hunt is on.
Latest articles from Regulation
As Basel III regulations come into play, banks looking for a quick fix to bulky balance sheets are divesting their trade finance assets, creating a gap in the market that investor groups and other alternative financiers are keen to fill.
It is not just the number, but also the complexity and regional variations of new banking regulations that are posing a challenge to international banks.
After years of uncertainty, companies now have to be prepared for the Single Euro Payments Area (SEPA) because it’s the law. Rather than merely complying with SEPA rules and regulations, corporates need to focus on the opportunities that SEPA brings, says Robin Terry, head of business development and sales for HSBC’s cash management business in Europe
Liquidity has the unpleasant habit of vanishing when it is needed most, and liquidity requirements for banks have the potential to make this problem work. The recent decision of the Basel Committee to broaden the set of assets eligible for the liquidity coverage ratio alleviates some of the issues – but more work is needed.
Cross-border universal banks will have to decide not only which countries and product segments to operate in, but also how to build the management structures to deliver the best return on capital under increased regulatory constraints.
Banks have struggled with the implementation deadline of Basel III regulations, due to differing approaches to the two key liquidity and capital measurements. So, what is the outlook for the implementation of Basel III?
New regulations and resolution and recovery regimes are forcing banks across the world to change their models and strategies. While much is still uncertain, it is clear that how they manage their capital levels and funding will be crucial to determining what business lines they can go into.
Banks that operate across borders must tackle differences between jurisdictions in a context where most regulators are intensifying the scrutiny of both balance sheet and strategy.
Non-bank organisations are increasingly engaged in bank-like activities, filling the gaps that banks are leaving and finding entirely new opportunities, which has led authorities to take note and tighten up the regulatory and supervisory framework for the shadow banking system.
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