The Banker magazine has been recording change for 80 years and so our journalists (even though none of us dates back quite that far) are well used to, if not a little blasé about, the phenomenon.
African governments and institutions are becoming increasingly professional, underpinned by an understanding of what is required to thrive in a globalised marketplace, says Patrick Cescau.
Although denied by China Construction Bank (CCB), there is talk of the Chinese bank being in preliminary discussions with US securities firm Bear Stearns to acquire a minority stake in the Wall Street resident.
Moldova is a land-locked country of about 4.2 million people. Gross domestic product (GDP) for 2004 was about 32bn lei ($2.6bn), a growth of 7.3% in real terms over 2003. Major contributors to real GDP growth were agriculture (3.4%), services (2.6%) and manufacturing (0.9%).
Total net private capital flows to emerging markets are expected to reach $357bn this year, down from the record $400bn posted in 2005 but still the second highest ever recorded.
Goldman Sachs has morphed from old-school investment bank to modern investment and trading house with huge earnings growth and, despite heavy criticism for opaqueness, where it goes, others are bound to follow. Geraldine Lambe reports.
Good results are not always good news. At least, they do not always generate good news. Goldman Sachs’ Q1 results blew away every prediction. Earnings were up 62% on the same quarter in 2005; there was massive growth in just about every area of its business, but it was in the triple digits for fixed income, currencies and commodities (FICC, 102%), debt underwriting (129%) and equities trading (167%).
China is chasing energy and mineral resources in Africa, attracting criticism for its apparent willingness to deal with ‘despotic’ regimes. James Eedes examines whether this deepening relationship will prove a saviour or curse for the continent.
Barclays Capital’s head of debt capital markets and investment banking, Americas, as well as the co-heads of leveraged finance, Americas, tell Geraldine Lambe how they plan to capture market share from the incumbent US heavyweights.
With most central bank reserves globally now held in Asia, demand for AAA unsecured bonds, covered bonds and even residential mortgage-backed securities will likely increase. Michael Marray looks at the opportunities for European borrowers.
From left to right: Shyam Parekh, John Travis, Gergely Voros
By using a convertible hybrid structure the Morgan Stanley team were able to solve the privatisation predicament of Hungarian hydrocarbons company MOL. Edward Russell-Walling finds out how they did it.
Martine Billeaud: UK investors are used to dealing with perpetual bonds, without a step-up
To finance its acquisition of Banca Nazionale del Lavoro, BNP Paribas raised two tranches of Tier 1 capital, switching one from the dollar market to sterling in a wise move. By Edward Russell-Walling.
For those who doubted that European cross-border bank consolidation could happen any time soon, BNP Paribas is the latest to test their non-belief.
Emerging markets may be entering a new paradigm but that does not mean that financial risk has been eliminated. Remember the tech boom and crash? The internet changed the way business operates forever but analysts and investors still displayed their traditional over-exuberance in a rising market.
Colombia is one such country that has used the current benign conditions to improve public finances but that does not mean that all the pieces of an economic growth formula are in place. The country has the same pitiful loans to gross domestic product (GDP) ratio of 25% that it had in the 1970s.
Electronic trading of over-the-counter derivatives is just beginning and is expected to boost volumes considerably in the future, driven by both the buy-side and the sell-side. Natasha De Teran reports on developments in the way OTC business is being done.
Implementation advice is coming from all quarters and there are still voices of dissent but organisations must now get on with their preparations for compliance with MiFID, says Michael Imeson. He finds out how the investment services industry is faring.
Organisations that have to make IT changes to comply with MiFID can use the opportunity to go beyond their obligations with a more imaginative approach that will give them a competitive advantage, says John Neasham.
Five key areas must be addressed early in any MiFID compliance programme, says Nikki Lovejoy, and getting them right will ensure the right level of management support and investment.
Whatever the prospects of deferment of MiFID transposition dates, for the moment they stand. This means firms must develop their implementation strategy and, where possible, start the process, says Anthony Belchambers.
Recep Tayyip Erdogan: the PM’s government is planning to sell the big three state banks
With interest rates falling, Turkey’s banks have moved away from financing of government debt to providing loans and mortgages. Metin Demirsar reports.
Turkey’s banking system is growing rapidly due to cross-border transactions and a buoyant economy. Banks are shifting funds from government securities to loans, as interest rates fall, and competition is intensifying in consumer banking and housing finance.
The deal struck between National Bank of Greece to buy Turkey’s Finansbank is likely to be the first in a line of cross-border acquisitions. Kerin Hope reports.
Before Ukraine has settled into its new government, the big banks of Europe have already decided that they want a presence in the country. James Hydzik reports on the growing acquisitions activity.
Despite significant structural change over the past five years, Romania faces daunting macroeconomic challenges as it gears up for EU membership. Nick Spiro explains.
As Romania’s banks cash in on the surge in consumer borrowing, the central bank, concerned about a rising current account deficit, is placing stringent curbs on foreign currency lending. The measures are proving highly controversial.
After a bear market and fund scandals, The Bucharest Stock Exchange’s market capitalisation is in the ascendancy. But more privatisation is necessary if the gains are to be consolidated. Nick Spiro explains.
Romania’s central bank is not the only one in the region that is trying to curb the strong demand for foreign-currency loans. Yet the effectiveness and appropriateness of the restrictions are questionable.
Thailand’s banks are riding out the political uncertainty left by the departure of prime minister Thaksin Shinawatra. Simon Montlake reports from Bangkok.
A crisis lies in waiting for Mexico in the shape of its frontrunning presidential candidate. Karina Robinson reports from Mexico City on the likely risk scenarios.
Kenya’s politics are as turbulent as ever. Despite this, the private sector, and banks in particular, are doing well. James Eedes reports from Nairobi.
Does Ugandan president Yoweri Museveni’s ballot victory in a contested election forebode a creeping reversal of Uganda’s progress or is he still the best man for the job? James Eedes reports.
Were it not for the genocide, Rwanda would barely register. Small, landlocked and poor, the country’s prospects have never been good. But in Kigali, James Eedes finds some cause for optimism.
Fortis chief executive Jean-Paul Votron tells Stephen Timewell how the bank is extending its reach through acquisitions, joint ventures and white-labelling – and plans to grow a global footprint.
Chicago Mercantile Exchange’s CIO is constantly monitoring the support technology of the US’s biggest futures exchange. The tech function has to cope with growing trading volumes and is also seen as a route to expansion. Dan Barnes reports.
Spreadsheets are vital tools for traders and banks’ back-office staff but their flexibility can weaken governance. Dan Barnes looks at the problems and the potential solutions.
Banks’ risk-avoiding trait of being lemmings not leaders has left the payments arena wide open for PayPal to build up its $27.5bn business. It seems unlikely that the banks will be able to catch up.By Chris Skinner.
In light of lagging customer satisfaction and growing competition within and from outside the financial services industry, banks can hardly afford to stand still.
Bankers in the EU now have to beware of how they treat ‘old codgers’ and ‘young whippersnappers’ because of new age discrimination laws in the European Employment Directive. But no matter how careful they are, more litigation is likely, writes Michael Imeson.
Are banks transforming or just transacting? Britta Schnittspahn of BearingPoint, the management and technology consultants, examines the need for financial institutions to change their IT systems’ focus from transactional efficiency to customer management.
Of all the reasons for replacing core systems, the fact the competition are doing it is the most likely precursor to overcoming board level resistance and unlocking budgets. Martin Whybrow explains.
Updating a core system has been likened to fixing an aeroplane’s engine in mid-flight. Competition, regulation and the inflexibility of legacy systems are major obstacles, each of which require investment in time and infrastructure to overcome. Wendy Atkins explains.
It is not only top-tier banks that can take a truly holistic approach to core banking. Mid-size US bank Bremer can teach something to the behemoths, says Joshua Weinberger.
Top-tier banks must modernise their core banking systems if they are to see off non-retail competitors that are positioning themselves to appeal to customers on cost alone. Britta Schnittspahn of BearingPoint Germany explains.
UAE banks should see earnings rise in 2006 but the gravy train of triple-digit profit growth built on absurdly oversubscribed flotations appears to be ending. Richard Dean reports from Dubai.
Morgan Stanley’s managing director in the UAE, Georges Makhoul, tells Richard Dean how the bank has thrived since it opened for business in Dubai last year.
