The future of banking is becoming clearer. It is a future of more capital, more liquidity and less risk. And, inevitably, it is a future of lower returns on capital, higher costs of doing business and slower growth with ultimate effects being felt by investors and end-consumers. Close scrutiny of bank performance by investors, regulators and other stakeholders is likely to continue.
Basel III, together with the broader regulatory change agenda, is set to redraw the banking landscape. It will have a profound impact on profitability and force many banks to transform their business models. It will also require firms to implement significant process and system changes.
It is critical that firms take steps to reset their business models to the new capital and liquidity standards. By acting now, firms not only start to tackle Basel III’s many challenges but are also in a better position to respond to competitive pressures and deal with the complexities and uncertainties of the wider regulatory landscape.
Our dedicated team has the expertise, insight and global reach to help provide comprehensive support for all the business challenges in today's Basel III world. If you would like to discuss the implications of how Basel III will affect your organisation, our team of leading advisors can help. Please speak to your usual PwC contact or one of those listed above.
The level of regulatory change is significant and complex and requires fundamental business change.