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.
A new map for global banks
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.
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 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?
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.