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“Banks need to rationalise their own organisations to find costs efficiencies”

“Passing on these costs to customers is unreasonable given that Basel III has come about as a result of flaws in the banking sector”

“By optimising Bank Relationship Management, CFOs and Treasurers are able to create market discipline and boost their organisation’s position with the banks”

Basel, 11th November 2010 – Vallstein AG, the leading provider of Bank Relationship Management (BRM) solutions, says that implementing the new Basel III rules will not necessarily incur higher costs for companies in the UK market.

"Banks have a number of options available to adjust to the changes proposed by Basel III. Some banks claim that they can only respond to the new regulations by increasing loan rates, however, we believe that quite the opposite is true. By reducing operating expenses and optimising their business strategy banks can more than offset the impact of the Basel III rules", said Hugo van Wijk, Co-CEO of Vallstein AG.

“Every other business sector and public organisation across the UK, and throughout Europe, has had to look at the efficiency of their organisation and cut costs,” he continues. “Why should the banking sector be any different? It is not reasonable to claim that additional costs will be passed on to customers without any kind of rationalisation of their businesses. Especially when the changes proposed by Basel III are to promote a more resilient banking sector as a direct result of the banking crisis.”

Vallstein believes that the projected increase of capital requirements does not necessarily lead to higher loan rates if banks ensure a less risky profile is reflected in the Return on Equity, a better product mix management and greater efficiency for lower cost.

"So what can companies do to optimise their relationships with banks and become less dependent on banks' conditions? Know-how and transparency are key tools for a sustainable and profitable Business Relationship Management (BRM) strategy", van Wijk continued. "Since the global financial crisis, BRM has become a key compliance factor and is top priority for CFOs, FDs and Treasurers. Today, companies know how important it is to evaluate exactly which bank they want to work with and which banking relationship makes most sense from an economic perspective."

He continued, “Companies require basic knowledge and facts based on real figures to strengthen their negotiating power with banks. Having a clear picture of the entire financial sector landscape enables them to make clear and realistic demands as a customer. A software-based solution, such as the one provided by Vallstein, empowers large and medium sized companies to gain this information and gather full insight into their potential, which can then be turned easily and quickly into intelligent BRM. This way, companies can manage their entire banking, worldwide, and minimise potential risks. Maximum transparency and control of their bank relationships equips them with a sound basis for negotiations with the banks of their choice.”

The complete article on the impact of Basel III is available at Vallstein AG's website (

Information for editors:
All quotes in the header, sub-header and body of this release are attributable to Hugo van Wijk, Co-CEO of Vallstein AG.

For further information and a briefing on the impact of Basel III on the economy from Hugo, please contact:

Charlotte Hanson or James Cooper
Ascendant Communications
Email: /
Tel: 0208 334 8041

Information about Vallstein
Vallstein is the leading provider of Bank Relationship Management (BRM) solutions. The company was founded in the year 2000 following a vision to create a breakthrough in the way corporations manage a core component of their business, the banking business. Core to Vallstein’s solutions is the WalletSizing® concept, which provides a fundamental innovation in BRM. Delivered as software on demand (SaaS), Vallstein´s solutions empower large and medium sized companies to gain full insight, control and compliance to their banking business, resulting in an information lead and significantly improved conditions. More than 130 corporations use Vallstein’s solutions to execute their BRM.

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