This new regulatory paradigm for banks is characterized by the combination of a set of highly demanding, redundant, and elaborate rules and, more concerningly, with a greater number of supervisors who also possess a high degree of discretion. This new, more complicated and uncertain environment, in which financial institutions must operate, may have undesirable effects that can impact both banks and the real economy they finance. However, it is also true that this new framework defines the rules under which banks will have to compete in the future, which will require them to have a capacity for strategic analysis and, where appropriate, to transform their business model to survive in the new environment.
José María Roldán, Chairman of the Spanish Banking Association
