New banking models needed for Basel III

Local banks in the Philippines have to go “back to the basics” in terms of their business models to deal with the impact of the Basel III requirement on their profits, Bankers Association of the Philippines (BAP) President Lorenzo Tan said.

On the sidelines of the BAP annual meeting on Monday, Tan said the Basel III capital requirement will force banks to change their business models to meet the standards for higher capital, less leverage and several consumer protection rules.