Banks’ changes are attributable to capital and liquidity costs

Bank business models are under pressure from regulatory change Regulatory changes, in particular those related to Basel lll, are placing increased pressure on traditional business models. Nearly two-thirds (65%) of banks agree that the combined liquidity and capital changes under Basel lll will have a significant impact on the cost of doing business, and more than half are targeting lower ROEs. More than four in 10 (43%) banks are exiting entire lines of business that are no longer sufficiently profitable, and 12% are exiting geographies and retreating back to core markets



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