New strategies in a changing world of bank regulation

Making a fresh start

In the wake of the global financial crisis it is very clear that regulation and supervision are affecting banks’ strategies and business models in an unprecedented and, for some, previously unimaginable way.

This latest paper from Deloitte’s EMEA Centre for Regulatory Strategy and Banking Union Centre in Frankfurt explores the challenges that many banking executives are facing in order to design a sustainable business strategy in a world in which increased regulatory and supervisory pressures are challenging the fundamentals of existing business models in an unprecedented way.

With soaring capital and liquidity requirements demanded by regulators, regulation is squarely a strategic consideration for today’s financial institutions. What is more, the strategies and business models of individual banks are now firmly in the sights of supervisors driven by the new paradigm of forward-looking, judgement-based supervision advocated by many as the ‘antidote’ to the box-ticking supervision of the past.

This point of view seeks to tackle these issues, and to answer some of the questions they raise. Can banks do better? Could taking the supervisory perspective even be a source of additional strength? And are there opportunities to use regulatory and supervisory imperatives to drive cost savings, create commercial opportunities or to accelerate adoption of new business models - especially in the area of IT infrastructure, data management, and analytics?

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