Bank Deregulation Primer 2025
How will the US-led bank deregulation wave impact the top 19 global banks?
As global regulators set their approaches for banks capital requirements, the implications for the world’s largest banks are becoming increasingly significant. In our inaugural Bank Deregulation Primer, we assess the potential impact of these regulatory shifts on the top 19 global banks.
The primer offers senior banking leaders a structured framework to:
- Untangle the global complexity of capital requirements
- Understand the multiple ongoing regulatory initiatives
- Uncover the scale of financial impacts across jurisdictions
Key Insights
- In the United States, the deregulatory agenda could enable banks to release up to 14% of their CET1 capital, unlocking approximately $2.6 trillion in additional asset capacity for lending and capital markets activity.
- In the United Kingdom, regulators are expected to consider a similar approach, potentially releasing 102 basis points of CET1 capital, equivalent to c.$0.5 trillion in additional capacity.
- Switzerland is moving in the opposite direction. Its sole global systemically important bank (G-SIB) may face a significant increase in minimum CET1 requirements, and could rise by 769 basis points to 19%.
- The European Union has no immediate plans to reduce capital requirements and is currently focused on regulatory simplification.
“US deregulation is reshaping the playing field for global banks. The release of $2.6 trillion in asset capacity will represent a direct boost to US economic growth and underlines the scale of policy divergence. The UK appears set to follow, but the EU and Switzerland are taking a very different path. These competing approaches will drive valuation gaps, strategic repositioning and regulatory arbitrage for years to come.” - Fernando de la Mora, Co-Head of Alvarez & Marsal’s EMEA Financial Services Industry Group
To view a deregulatory scorecard with potential forecasts on deregulation and financial impacts for the top 19 global banks, read our report today.
