The banking sector is entering a significant period of comparatively constrained returns and profitability. Therefore, it is the more important for senior decision makers to identify actions which can cut costs, boost margins, increase flexibility and promote operational excellence.
Banks are improving their distribution systems to focus on sales, customer experience and guided selling rather than transaction processing. In addition, new regulations will require new systems and processes and new data recording and reporting. With a focus on improved competitive capabilities, these systems can be devised in such a way that they bring operational benefits and efficiencies.
Capital & liquidity
Capital and liquidity issues are major board agenda items for banks worldwide as intense scrutiny of banks and their risk profiles continues. Regulatory reforms such as Basel III put additional responsibilities and pressures on banks, their directors and their finance and compliance teams.
The implications of Basel III for banking business models, their shareholders and customers are significant. The requirement for higher levels of capital, greater liquidity and less risk has created new challenges for senior decision makers.
From January 1, 2013, Basel III requires all new non-equity capital to have a new bail-in feature. Banks are expected to have a ‘stable funding structure' to meet its liquidity requirements in times of stress.
How KPMG can help
KPMG’s Banking team has significant expertise and experience in dealing with these capital and liquidity challenges. We can work with our you to help you understand not just the detail of how these requirements will affect your business, but also to help put in place the solutions needed to deliver compliance.
If you would like to find out more about the implications of Basel III and related capital and liquidity matters please do get in touch.