Managing liquidity in a new regulatory era: The tactical and strategic challenges for banks

During their meeting in Seoul in November 2010, to strengthen the resilience of the global financial industry, the G-20 countries approved the new rules for banking regulation known as Basel III. The provisions governing bank funding and liquidity management will have a more fundamental impact on banks’ business models than many executives expect. Those banks that fail to develop alternative sources of funding will need to adjust their business models significantly. On both the tactical and strategic fronts, Booz & Company proposes several options for banks to consider.