Banks Brace For Basel III Liquidity Management Impact


New York, NY (PRWEB) August 02, 2011

The introduction of Basel III, which changes the way banks approach liquidity management and data reporting, will have a marked impact on banks profitability and overall business models, according to Ernst & Youngs Global Banking & Capital Markets Center.

Basel III is the first attempt to globally harmonize regulation and provide a platform for each country to standardize its liquidity guidelines. These new standards will require an increase in liquid assets held by banks and also will require that these assets be of higher quality. As a result, banks costs and profitability will be affected.

But liquidity is just one factor banks will need to consider. To comply with Basel III, banks of all sizes are facing costly operational and technical requirements related to data reporting.

Data and technology infrastructures are where institutions are beginning to invest heavily, according to Peter Marshall, Ernst & Young Principal in Financial Services. Banks will need to pull together information across the organization, slice it and dice it in lots of different ways, and provide it to the regulators.

Marshall outlined the operational impacts of Basel III that banks must consider:

Tags: , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]