How banking reform will affect financials

FINANCIALS

SLI's Andrew Fraser says new banking regulation is a step in the right direction to ensuring banks pose less risk to the economy.

The world’s banking system is in the midst of a regulatory overhaul that is likely to have a profound impact on how investors view financial institutions and the debt they issue. The new rules focus on increasing the resilience of the global banking sector by raising the quality, quantity and consistency of bank capital and liquidity, while at the same time constraining the leverage within the system and penalising managements for taking excessive risks. We regard the ongoing reforms as a watershed period for the banking industry and believe the new regulatory framework will have implica...