Financial services firms that successfully change IT infrastructure to comply with Basel II will gain large competitive advantage by reducing regulatory capital requirements. Banks will have to reduce the size of their businesses or increase their capital. By outsourcing, a bank will be able to reduce its operational risk capital, thus increasing the amount of capital available to support its core business and therefore its profits. In the next five years, the top 10 firms will again double their market share, this time to 80 percent, authors say.”]
Source: https://www.csoonline.com/article/2113180/financial-services-sector-braces-for-basel-ii.html