Basel rules set to change

Despite the difficulty and cost involved, even banks accept that aspects of the old financial regulatory regime must yield their place and go. Patrick Blum asks industry consultants what Basel II reforms they expect to see in 2010, and how firms can prepare for more upheaval

Proposals by banking supervisors to upgrade Basel II rules have drawn a stream of protest from bankers, who fear they will have an adverse impact on their business. While some of the measures, such as new capital and liquidity requirements, will place additional burdens on financial institutions and put pressure on margins, the overall effect will depend on the result of consultations with the industry. For consultants and management systems providers the changes provide an opportunity and a