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Basel III: Banks Expect Lower Profits

Published: November 11, 2010; 13:09 · (Vindobona)

Private banks will have to adjust to lower profits because of Basel III regulations..

Basel III: Banks Expect Lower Profits / Picture: © Vindobona.org

The returns on equity will, depending on the business model of the bank amount to 15 to 20%, says the president of the Bankenverband (BdB, Banking Association), Andreas Schmitz, in an interview with the Reuters news agency.

Basel III demands a higher capital base from the banks. "More capital for the same business leads to lower returns on equity." This in turn could lead the…

This article includes a total of 242 words.

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