The European banking regulatory framework in turning point – How are the evolving banking regulations reshaping banking business in the EU?
Matilainen, Nea (2014)
Matilainen, Nea
HAAGA-HELIA ammattikorkeakoulu
2014
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014112616893
https://urn.fi/URN:NBN:fi:amk-2014112616893
Tiivistelmä
The recent global financial crisis has heavily reshaped the banking business around the world, especially during the past couple of years. All national banks within the European Union are influenced by decisions made on a global and on a European level, and many times it is failed to notice that the new banking regulations in terms of capital, liquidity, resolvability are not just endless red tape, but binding set of regulations that inevitably change the business environment where banks are operating. The banking sector in the European Union is in a turning point, as banks are forced to better understand and respond to the three growing sources of pressures – customers, investors, and regulators – all of them having diverse and even conflicting demands towards banks.
The investigative research was conducted by collecting high-quality, secondary data online, including reports and memos by the European Union, articles and investigative reports from different respected institutions, and articles published by financial professionals in different newspapers. The evolving banking regulation sphere raises questions and varying opinions among financial leaders and especially within banks, and thus the topic could be viewed from multiple different point-of-views. This research provides an objective view on the current, demanding, situation banks are facing. The thesis is written in a consultative manner, to help all possible stakeholders understand the phenomenon and give some guidance how to adapt.
The research tackles the question how the European banks are affected by the regulatory reforms, by investigating how banking regulation framework is formed in the EU and who are the regulators. In the end, one can learn how the European banks are affected by the regulative changes in reality. It is clear that the pressures from various sources are greater than ever before, and some banks fail to meet the new requirements. However, as the study shows, banks can also learn to identify the drivers behind the current regulatory changes and find new cost-efficient ways to improve their business models and this way comply with the new banking regulations.
The investigative research was conducted by collecting high-quality, secondary data online, including reports and memos by the European Union, articles and investigative reports from different respected institutions, and articles published by financial professionals in different newspapers. The evolving banking regulation sphere raises questions and varying opinions among financial leaders and especially within banks, and thus the topic could be viewed from multiple different point-of-views. This research provides an objective view on the current, demanding, situation banks are facing. The thesis is written in a consultative manner, to help all possible stakeholders understand the phenomenon and give some guidance how to adapt.
The research tackles the question how the European banks are affected by the regulatory reforms, by investigating how banking regulation framework is formed in the EU and who are the regulators. In the end, one can learn how the European banks are affected by the regulative changes in reality. It is clear that the pressures from various sources are greater than ever before, and some banks fail to meet the new requirements. However, as the study shows, banks can also learn to identify the drivers behind the current regulatory changes and find new cost-efficient ways to improve their business models and this way comply with the new banking regulations.