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How Deutsche Bank found alternative ways for profitability under Basel III regulations 

March 12, 2014
Gerry Yemen, George (Yiorgos) Allayannis, Matthew Dougherty and Andrew Wicks, The Washington Post

The big idea: For banks, the accelerated trend in globalization meant they had to provide a range of commercial and investment banking services to clients, and they had to do so in all the places their customers were doing business. Increasingly, customers banked outside of their home countries. Additionally, most investment banking activities, especially sales and trading, benefited from economies of scale, so banks became more profitable as the volume of services and transactions they provided increased.

As big banks became a “one-stop shop,” increased leveraging in the sector contributed to higher returns during the boom and deeper financial troubles during the 2008 global financial crisis. The response was a revised global banking regulatory framework — Basel III. It aimed to make the global financial system safer by increasing bank capital and liquidity requirements, among other things. Basel III could fundamentally change the banking industry landscape.

Read more: The Washington Post

 
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