Bank business models changing due to Basel III, says EY
Half of G-Sifis face demands to change business mix or deleverage, survey finds
Basel III bank capital rules are having an impact on banks' business models – for instance, by pushing them out of more complex, less liquid products and forcing them to limit the number of geographies in which they are active, a recent survey by consultancy EY has found.
Finalised in the aftermath of the global financial crisis, the rules adopted by the Basel Committee on Banking Supervision impose a common equity Tier 1 capital ratio of 4.5%, along with a 2.5% capital conservation buffer. For
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