Treasury Strategy & Transformation
Published  14 MIN READ

The Unintended Consequences of Banking Regulations

by Helen Sanders, Editor, TMI

Understanding and complying with evolving financial regulations is one of the most challenging aspects of treasurers’ role, particularly for organisations operating internationally. Local, regional and global regulations may conflict or overlap, but an added difficulty is that treasurers are often affected by rules that are not directly targeted at them. As Andrej Ankerst, Head of Cash Management Germany and Austria, BNP Paribas explains,

“Since the global financial crisis in particular, corporate treasurers have had to deal with a diverse range of regulatory developments. Some of these, such as SEPA and EMIR, have a direct impact on processes, systems and reporting. However, just as important are regulations that are not targeted at corporations specifically, but which have indirect implications, particularly banking regulations such as Basel III. Treasurers may be less aware of the detail of these regulations as compliance is not an issue in the way as ‘direct’ regulations would be, but the impact may be at least as significant.”