BOOK REVIEW TRANSACTION BANKING AND THE IMPACT OF REGULATORY CHANGE Basel III and Other Challenges for the Global Economy By Ruth Wandhofer Palgrave Macmillan ISBN: 978 1 13735 176 0 www.palgrave.com REGULATING TRANSACTION BANKING: A LEADING AUTHORITY SPEAKS OUT An appreciation by Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers Banking is arguably that area of financial services which links most frequently with the law. Published by Palgrave Macmillan, this important book by Ruth Wandhofer discusses in depth and with refreshing clarity, the regulatory reform process which, in her words ‘plays the important role of stabilising the banking industry with a view to significantly reducing the risk of future crisis.’ The crisis referred to is, of course, the worldwide financial meltdown that raised its head in 2007 and which, among other consequences, has generated a plethora of banking regulation designed to prevent such crises happening in the future. But has all this regulatory zeal been uniformly a good thing? Has the regulation of deposit-taking institutions actually, as the author describes, ensured ‘the safety of customer deposits and the stability of the financial system’? Or have certain unintended consequences been created as well? In examining the answers to these key questions, Ruth Wandhofer looks at what she terms ‘two building blocks: regulatory reform and transaction banking.’ Within these two parameters there is of course an astoundingly wide spectrum of issues which continue to impact on the banking industry worldwide such as structural reform, limitation on certain bank activities, the issue of centralized supervision, the problem of ‘too big to fail’ banks and so forth – and these are only a few examples of the areas discussed. The banking industry -- transaction banking in particular -- impacts on all of us and provides a fascinating subject for scrutiny. Certainly Ruth Wandhofer is impressively well qualified to explain its complexities, being a regulatory expert and top authority on transaction banking regulatory matters. Among an astonishing array of qualifications, Ruth chairs the EU-wide Payments Regulatory Expert Group and is also chair of the European Payments Council Information Security Group. Currently she is Global Head of Regulatory and Market Strategy for Citi’s Treasury and Trade Solutions business. Writing in the Foreword, Victor Constancio, Vice President of the European Central Bank, refers to this book as ‘an essential navigation tool’ to enable understanding of ‘the key measures imposed by the regulatory reform of the banking industry and their impacts on banks, their customers and the broader economy.’ And essential it is, both for those involved in the banking industry and those who aren’t. ‘Banking,’ says the author, ‘has been public enemy number one for the last few years’ with little said ‘about the relevance of banking to the real economy’. Here at last is a book which does just that, with gravitas, erudition and panache. It does indeed explore the regulatory landscape in detail, including the set of regulatory measures known as ‘Basel III’. As accessible to lay readers as professionals, this is a book that speaks with authority to academics, researchers and students, as well as legal practitioners and indeed anyone involved in the financial services industry. If you wish to enhance your understanding of the ins and outs of banking, you’ll need to rush out and order it now. The publication date is cited as at 2014.

• published: 12 Apr 2015
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