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Dealing with divergence

A strategic response to growing complexity in global banking rules

This report explores the challenges that ‘Basel IV’ and an uneven regulatory landscape could create for banking in the near future. It outlines the growing fragmentation of the global regulatory framework for banks and identifies regulatory strategy capabilities banks can develop in order to enhance the resilience of their business models to this complexity.

Executive summary

Governments are now showing signs of a greater willingness to diverge from international financial regulatory standards, most notably the Basel framework. This will have very real implications for banks trying to operate internationally, risking a substantial increase in their costs and less predictability around the impact of regulation on their overall performance and profitability.

In order to respond effectively, banks will need to develop strong regulatory strategy capabilities to enable them to navigate the complexity that regulatory divergence will create. These capabilities can support commercial decision-making and ultimately contribute to the creation of more sustainable business models for banks.

Download our report to understand more about our divergence-resilient approach to managing regulatory complexity.

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Dealing with divergence

A divergence-resilient approach to managing regulatory complexity

About the Center for Regulatory Strategy

As regulators and legislators respond to the unpredictable global economic, business, and geo-political landscape—as well as the introduction of new technologies and digital platforms—they will continue to reshape today’s operating frameworks across industries, creating a growing list of challenges for many firms.

Through regular dialogue with institutions, trade associations, and other regulatory stakeholders, the Center helps Deloitte’s clients stay ahead of evolving regulatory trends and understand what actions can be taken. With regional hubs in the Americas, Asia Pacific, and Europe, the Middle East, and Africa (EMEA), the Center combines the strength of Deloitte’s network of experienced risk, regulatory, and industry professionals—including a deep roster of former regulators, industry specialists, and business advisers—with a rich understanding of the impact of regulations on business models and strategy.

The Center in the Americas has a multi-industry focus, covering financial services, health care, life sciences, and energy, while the Center in Asia Pacific and EMEA is focused on the financial services industry.

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