Smaller banks expected to suffer from new regulations

Large banks and non-bank financial institutions will be the winners from post-crisis tightening of financial regulation, with smaller banks set to suffer, according to speakers at a Chatham House conference in London today.

The conference was held under condition of anonymity. One speaker pointed out that non-bank financial institutions would profit from less competition in markets that carried higher capital requirements for banks; also, he added, regulatory disincentives to securitisation