The Regulatory Black Hole: Basel III and Other Challenges for Transaction Banking and the Global Economy

Transaction banking provides the backbone of the global economy, and is a key financial service offered by banks covering payments and cash management, trade finance, supply chain and securities services. Now with a wave of regulatory requirements such as Basel III the transaction banking business is being significantly impacted by both intended and unintended consequences.

In this book, Ruth Wandhöfer presents an insider's guide to the impact of regulation on the transaction banking business, exploring regulatory reform and the role of transaction banking. It provides a deep dive into Basel I – III that enables the reader to understand how these rules impact a bank's balance sheet, followed by a critical analysis of European and US payments regulation. It covers areas such as prudential rules; liquidity/capital; specific product related legislations for payment services; trade finance; potential impacts on competition; and what it means for the end user. Ruth also shares practical suggestions to reduce the unintended consequences of these measures on transaction banking and proposes an alternative regulatory model for prudential regulation.

This book is essential reading for regulators, bankers, politicians, students and anyone with a curious mind.