Transaction banks buckle down to Basle III

Euromoney Limited, Registered in England & Wales, Company number 15236090

4 Bouverie Street, London, EC4Y 8AX

Copyright © Euromoney Limited 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Transaction banks buckle down to Basle III

The more exacting capital requirements of Basle III are prompting cash management banks to fine-tune their offerings.

Cash management banks have spent much of the post-crisis period working with their clients to help them implement regulatory measures such as the Dodd-Frank Act and the Single Euro Payments Area. Now banks are preparing for Basle III, the most important regulatory initiative introduced since 2008. Basle III not only has direct implications for banks’ corporate and financial institution (FI) clients; it could also shake up transaction banking forever. Basle III transforms how treasury departments and banks interact by changing the characteristics of many popular transactions. For FIs, the change will be especially dramatic, given the Basle Committee’s assumption that FIs are less likely to stick with a bank when the chips are down. "Every bank will have to handle the implications of Basle III differently because they have a different customer base, but it will produce a major change in the relationship between most banks and their customers," says Markus Straussfeld, head of international cash management sales at UniCredit.

Gift this article