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GRC : Basel III Regulations Impact Banks Projections


The Financial Times reported that HSBC are concerned over new regulations that are being brought in to attempt to make the financial sector safer. This is in relation to the new Basel III standards which focus on bank capital adequacy and liquidity and is being brought in as a response to the global financial crisis.



The FT reported HSBC’s Chairman as warning that this would constrain profitability and hamper lending quoting him as saying “It will be a near impossibility for the industry to expand business lending at the same time as increasing the amount of deposits deployed in government bonds”.

As with any new regulations, companies must ensure that they have the appropriate processes in place to minimise the effect that these have on the business, underpinned by controls and frameworks that ensure compliance, whilst maximising future opportunities.

Wednesday, March 16th 2011
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