Mia Drennan, CEO at GLAS
5th August 2016
When discussing the impact of financial regulation – particularly big, sweeping changes that encompass multiple jurisdictions and authorities – we often talk of ‘unintended consequences’, and rightly so. We also tend to assume that any unintended consequences will be negative. But it is quite possible for an unintended consequence to be positive. Happy accidents do happen.
The ongoing impact of post-crash banking regulation on corporate lending is a case in point. Thanks to reforms such as Basel III, banks must now hold a far greater portion of their capital in reserve.Some banks may face even stricter requirements in future; only this month Sir John Vickers called for UK banks to be forced to shore up their financial buffers further in the face of renewed market volatility.