BMEc Masterclass: The Future of Banking, 6 March 2013

Professor Moorad Choudhry (Treasurer and Acting Head of Strategy and Regulation at RBS Corporate Banking) visited BMEc on 6 March to present a summary of key challenges faced by banks in the future, including the need to embrace a 'road map' addressing regulatory requirements.

Professor Choudhry placed particular emphasis on the importance of Basel III (or the Third Basel Accord), a global regulatory standard which places more onerous demands on capital and liquidity (especially the latter). He argued that both banks and shareholders must accept that the changed business model delivers a lower return on capital than what was expected in the years leading up to the crash.