Regulatory changes as well as any additional write-downs made in connection with the sale of NPLs could affect loan-loss provisioning. Competition in the asset management market is bound to grow, as is the scale of operations necessary to be profitable.
This is not an issue specific to banks but one which generally holds true for business taxation. The task of ensuring financial institutions’ capital adequacy is, nevertheless, primarily a regulatory one. Besides the Basel III regime, a host of other prudential rules have been tightened in response to the financial crisis.