Some people get the glassy-eyed look when banking regulations and the word Basel come up, but the issues are kind of crucial to the way business gets done. Rather than take our word for it, read the Alphaville’s review, which seems to be as relieved that something has been done, as the fact that it will take until 2019 to implement full. The biggest talking point is how much more equity the banks have to keep on hand (up to a whopping 7% now…), and whether banks would be wise to exceed that amount.
Watch for some banks to tap the capital markets in the near future as the moves towards compliance begin. Deutsche Bank, for example, is looking to finance its deal for Postbank, but its capital increase will have been influenced by the new reules as well. Santander’s purchase of WBK is also timed interestingly.