Abstract

The bank regulatory apparatus has become more and more complex and has affected banks strategic choices, business models and banks’ roles in financing economy. Capital adequacy requirements of Basel 3, Pillar 1 and Pillar 2 (SREP), have determined a combined and simultaneous action on recapitalization and de-risking, with RWA reduction, highlighting the nexus: «capital adequacy requirements-business model- profitability and capital remuneration». In a situation of over-regulation and possible overlapping of competences between regulators and supervisors, strategic actions to regain sustainable profitability are to be identified in business model changes and in streamlining structures.