Much has been done to define new regulations for the banking sector since the financial crisis. The prudential rules of Basel 3 with the so-called ‘final reform’ of December 2017 (commonly referred to as Basel 3.5 or Basel 4), for example, are as good as ready. So what can banks expect during the coming years?
Billions of euros of public funds were invested in systemically important institutions in order to sustain them at the height of the crisis. This was deemed an absolute one-off bail-out and the Financial Stability Board (FSB) introduced a proposal to end ‘too-big-to-fail’. Does this proposal effectively protect the tax payer or are we simply paying the burden in advance?
A lot has been written with regard to the introduction of Basel III, both in this magazine and in other media. The world is a different place, that’s a fact. We’ve learned that a more comprehensive insight into the implications of the Capital Requirements Directive is needed.
A lot has been said and written with regard to the introduction of Basel III. However, from discussions with our clients we learn that often a more comprehensive insight into the effects of Basel III on their banking relationships is desirable.