Latest articles from Transaction Banking

Transaction banking braced for a year of further consolidation

Faced with a mass of regulatory reform and the ill-effects of the sovereign debt crisis, transaction banking is set for more change. And despite the emergence of new competitors, the competitive landscape is contracting thanks to global consolidation. The Banker  speaks to some of the world's leading transaction bankers about their strategies for the coming year and beyond.

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Renminbi's global status: a case of when, not if?

There seems to be something of an inevitability about the renminbi's rise to reserve currency and global dominance. However, there are mutterings that this ascents will be curtailed by China's development model, corporate governance and financial system.

The extending reach of the renminbi

Despite the volatility in the global economy, the international value of the renminbi is increasing. But with China's slowing economy and the uncertainty surrounding how much further the country will go in liberalising its currency, how straightforward is the road ahead?

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Opportunities and risks as transaction banking gains traction

Transaction banking’s increased prominence in the global financial landscape has been well documented, but its increased standing has created issues as well as openings for market participants. Its rise in popularity has led to more competition, while the impact of macro-economic conditions, higher customer expectations and an unprecedented regulatory burden has made it increasingly tough just to stay in business. At a recent round table hosted by The Banker , a panel of industry experts discussed the challenges and opportunities faced by today's transaction bankers. The event, part of an ongoing series, was sponsored by Royal Bank of Scotland, but independently written and edited.

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Banks race to compete in renminbi

The renminbi is on a path to becoming an international currency, and the first step of the journey is for the Chinese currency to be used to settle trade payments. As businesses begin to see the benefits of using renminbi for trade settlement, banks are competing to make their mark on this growing business.

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Goodbye to FX safe havens

Global currency markets have become increasingly volatile as European policy-makers struggle to resolve the sovereign debt crisis and emerging economies try to limit currency rises at the same time as taming inflation. Traditional safe haven countries have been prompted to take historic action in a bid to stem currency appreciation and support exports. But are there any safe havens any more?

Are commodity currencies coming off the boil?

Commodity currencies have posted record gains in the past two years, fuelled by spiralling demand for food and materials. But some of these countries are now struggling to offset runaway inflation, and the rate of inflows is such that central banks are becoming increasingly helpless to reverse the pressure on their currency. 

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African currencies gain favour

Most African currencies are in demand thanks to high rates of economic growth across the continent. Analysts foresee this trend continuing over the next decade, with foreign inflows pushing up foreign exchange trading volumes in many African countries.

Are commodity currencies coming off the boil?

Regulations prompt FX and OTC rethink

New regulations, specifically the push towards central counterparty clearing, are having a huge impact on banks' over-the-counter foreign exchange operations. As the banking sector undergoes significant changes, what will this mean for banks' organisational structures and the foreign exchange market?

Transaction banking feels the squeeze

Transaction banking has had three good years since the 'masters of the universe' slunk off to lick their wounds in the wake of the global financial crisis. Cash management, trade finance, securities custody and card payment operations all became the unlikely stars of the post-crisis landscape, but now times are getting tough for them as well. Is the honeymoon over for transaction banking?