Bring on Basel III
The other major regulation for banks to deal with, albeit on an international level, is Basel III.
Basel III, a set of global regulations on bank capital and risk management set by The Basel Committee of global regulators, will be formally phased in starting January 2013. The guidelines were developed as an international regulatory standard to test bank capital adequacy and liquidity risk.
Many of these new capital standards will affect how banks operate, says Aite Group's Atkinson. One such example is the new statute that banks must now incorporate trade finance activity as part of their capital reserves. "Previously, this was considered off-balance sheet," she says, while adding that this requirement will likely only affect larger, multinational banks.