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. 

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.