Over Regulation is going to be our downfall

There are a huge array of regulatory mandates planned for the financial sector in the next three to five years and the potential unwanted outcomes are probably going to be diverse and multitudinous.

Ten combined regulatory afflictions would more than likely include this lot:

[1] Closing the proprietary trading desk – Volcker

[2] A CVA charge for the trading book – Basel III

[3] The countercyclical buffer – Basel III

[4] Restrictions on the types of capital that can be held – Basel III

[5] Axing of Tier 3 capital and hybrid capital – Basel III

[6] Credit retention for securitised books – Dodd Frank

[7] A move to central clearing and away from OTC trading – Numerous regulation

[8] Changes to amortised cost for securities especially those not held to maturity – IFRS 9

[9] New liquidity measurements and debt rollovers – Basel III

[10] Monetising your own default DVA charge – Basel III


Let's ask ourselves, is the cure for banking disorder as problematic as the cause?


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