We are not woolly liberals at The Banker and yet it is hard to deny that the greatest problem facing the world is growing inequality. The advance of technology is creating a divide between those with the skills to access and profit from it and those who do not. In the emerging markets, the gap is between those gaining from growing manufacturing sectors, tourism and call centres and those still stuck in urban slums or backward rural areas.
Asia is underepresented and Europe and the US must accordingly accept some loss of their overblown status – but all in good time.
Future retail profits depend on the major banks figuring out a way to harness this vast market, despite the short-term costs.
UK banks are being criticised for unfair practices, and are not good role models, says Andy Mullineux.
The key to unlocking Asia’s full potential in the global economy is to accelerate integration and co-operation within the region and internationally, writes Tan Sri Dato’ Sri Dr Zeti Akhtar Aziz.
Growing competition in South Korea, Asia’s third largest economy, is pushing banking consolidation, creating business opportunities and threatening the leader’s position.
By putting his foot down, European Central Bank president Jean-Claude Trichet has made himself quite unpopular with the families of the governing council members. Mr Trichet managed to disrupt a few holiday plans by requesting that all members attend the August 3 meeting in person, breaking the Brussels tradition of allowing members to
participate while on their summer holidays.
Hard on the heels of the UniCredit announcement of a second quarter net profit increase of 82.5% year-on-year has come its announcement of a realignment of its central and eastern European (CEE) holdings, in part to facilitate its accommodation with the forces of Polish nationalism.
IIF report highlights enormous GDP growth in the Gulf while Tower Group extols the virtues of dynamic pricing of services.
Lee Hsien Loong, Singapore’s prime minister, tells Karina Robinson that the city state’s continued success depends on self-betterment of the unskilled.
In their first major mergers and acquisitions forays overseas, Chinese companies are being buffeted by Sinophobia and their own lack of nous. Sophie Roell looks at recent deals.
Dr Thaksin Shinawatra, caretaker prime minister of Thailand, explains his government’s new development paradigm that sees its staple industries of tourism and agribusiness in the rural and urban areas growing together while at the same time diversifying, and focusing on creating value.
Temasek Holdings, owned by the Singapore finance ministry, is spreading its wings in Asia, expanding its portfolio of financial services and banking assets. Simon Montlake reports.
What Standard Chartered lacks in raw size, it more than makes up for in terms of emerging markets presence and knowledge as well as exemplary management policies, making it a prime takeover target. Karina Robinson explains.
Q: Do you expect Temasek to take you over?
A: No I don’t. We have known and dealt with Temasek for a long time. It has made it
very clear that it is very supportive of the strategy and very supportive of management and it sees value.
Datuk Amirsham Aziz, president and CEO of Maybank
As Maybank and CIMB encroach on each other’s strongholds, there is one area that looks large enough to accommodate them and others – Islamic banking. Karina Robinson, in Kuala Lumpur, reports.
As the Asian banking sector has grown, so too have the Tier 1 capital, total assets and pre-tax profits of the top 200 players. Terry Baker-Self analyses the rankings.
Policy makers and capital markets participants must engage with their emerging markets peers to promote change and convergence, writes Hans-Joerg Rudloff, chairman of Barclays Capital.
Emerging markets investors are discriminating increasingly between countries, signalling a fundamental shift in approach to the asset class. Geraldine Lambe reports on the changes.
Intelligence gathering is a crucial part of the role of the head of markets at the Bank of England, for its purposes of preserving monetary and financial stability. Paul Tucker reveals to Geraldine Lambe the three ‘unknowable’ things that would aid in the management of risk.
Regulatory flack fell on operational shortfalls in the over-the-counter derivatives business early last year. In a round table discussion hosted by The Banker, market participants ponder the potential repercussions on the buy-side and sell-side. Natasha de Terán reports.
Russia’s most European city is attracting more investment, through its trade links, port facilities and range of successful industries, writes Jules Stewart.
Yury Molchanov, deputy governor of St Petersburg, explains what the city is doing to attract investors.
Being Europe’s fourth-largest city by population, St Petersburg is highly attractive to foreign banks, which are snapping up local players, and bringing in huge amounts of capital to offer in loans to corporates and consumers. By Jules Stewart.
Foreign corporations are already moving into St Petersburg but the city is trying to make itself even more attractive through investor-friendly tax policies, simpler bureaucracy and better infrastructure. Jules Stewart reports.
Construction of theatres, hotels and office blocks are planned or under way in the city centre, as industry is moved in favour of tourism and services.
Prime Minister Matti Vanhanen hopes Finland’s EU presidency will allow the technology-savvy nation to spearhead important changes in the way Europe approaches science and innovation.
Christopher Pleister: German co-operative banks’ focus will always be on their home country
While expanding internationally, Europe’s big co-operative banks are at the same time drawing closer together, despite claims to the contrary by some of their CEOs. Jan F Wagner in Frankfurt reports.
After six years of bitter legal wrangling over who was to blame for the downfall of the once mighty IPB bank, Nomura Securities and the Czech government may be about to bury the hatchet. Robert Anderson recounts the acrimonious tale.
An economic slowdown has dampened Turkey’s housing boom. But construction in the commercial sector remains brisk and there is still wide scope for the development of real estate finance. Metin Demirsar reports.
Turkey’s young population is driving the skyrocketing demand for housing. Metin Demirsar reports on the projects that offer opportunities for investors.
Nick Kochan explains how contingency planning allowed The Bank of New York Beirut office to remain operational as Israeli bombs fell on Lebanon’s capital.
Egypt is lining up its state-owned banks at the privatisation starting block. Nick Kochan reports on the prospects.
International banks are being drawn into the Gulf by a sea of liquidity, with huge opportunities awaiting them provided they physically base themselves in the region, writes Jon Marks.
The oil price boom is fuelling a major investment spree abroad by the Gulf’s banks, companies and individuals, writes Jon Marks.
Raghuram Rajan, the IMF’s chief economist
Not only are there moves afoot to review the regional imbalances in the IMF’s and World Bank’s funding programmes but also calls to review the way the institutions’ leaders are chosen. Jane Monahan reports from Washington.
The departure of a leading reformer has left question marks over further good governance progress and is adding uncertainty to the chaotic preparations for Nigeria’s presidential elections next year. James Eedes writes.
Former World Bank chief economist Joe Stiglitz is famous for his critiques of globalisation. In this extract from his latest book, he proposes ways to make it work better, such as having a new reserve system.
Captains of industry or oligarchs? Many of Ukraine’s billionaires rub shoulders with politicians and some even taken up office themselves. Ben Aris reports on how the political tides are buffeting the country’s richest men and how they made their fortunes.
Azerbaijan is having to balance the demands of the poor with those of cautious economists when it comes to managing its soaring oil wealth. Nick Kochan explains.
The banking sector is growing hand-in-hand with the economy, accompanied by consolidation and privatisation, and opportunities for new products.
Samir Sharifov, Minister of Finance, tells Nick Kochan why Azerbaijan is tapping the Euromarkets as well as making great efforts to build up its non-oil sector.
So far the fortunes of the Baku Stock Exchange have been muted, but legal and systems changes are afoot.
Azerbaijan’s oil windfall is calculated to total $1000 dollars per capita per year for the next 20 years. Nick Kochan explains how production is being apportioned.
Forget the black gold of its oil industry – Azerbaijan’s real treasure is its cultural status as the birthplace of Indo-European civilisation, and the country is considering how to promote this to tourists. Courtney Fingar reports from Azerbaijan.
Rick Waugh, president and CEO, Scotiabank
Banking consolidation, international investment and the new regional free trade agreement are attracting the attention of big hungry banks looking for an acquisition. Brian Caplen reports.
Francisco de Paula Gutiérrez, president of Banco Central de Costa Rica
Seeking to improve their economies, Central America’s central bankers have been looking into the pros and cons of dollarisation, but so far only two countries have taken that path. Brian Caplen reports.
Steady growth in Latin America’s largest economy is mirrored by good profits for its major banks. Terry Baker-Self explains.
Alvaro Uribe: the president’s government has introduced capital restrictions
Colombia’s capital markets may be on the up but legal barriers are hindering their development. Jason Mitchell reports.
Providers of financial services must move towards web services and service-oriented environments in order that they can be more responsive to changing industry shifts and stay competitive in a turbulent market. By Samir Seth.
By adopting service-oriented architecture, financial enterprises will be better able to integrate processes, thereby creating more options to consolidate and excel in their core businesses. By Samir Seth.
By providing a standard approach across multiple vendors and technologies, service-orientated architecture will become simpler to manage. Heather McKenzie highlights the latest initiatives.
Central banks could achieve medium-term economic stability if they stopped making adjustments to every little price change and held to medium-term strategies, argues Allan Meltzer.
What is taken as gospel truth in European and American business circles, namely the infallibility of the western model, is far from accepted in the rest of the world. Brian Caplen explains why the dissenters exist and why their influence seems to be growing.
As was the case for the US in the 19th century, continued Chinese economic growth depends on it opening up its less developed western region. Much hinges on whether the transportation capabilities of the presently underutilised Yangtze river can be harnessed, says David Lammie.
From being viewed as the rather uninteresting transfer of low-value payments by migrant workers, the remittance market has captured the attention of the world’s largest banks. Stephen Timewell explains.
MasterCard’s chief information officer tells Dan Barnes of his healthy state of paranoia, which compels him to keep up to date with developments in the market place.
While China persuades countries to break diplomatic ties with Taiwan, Taipei may be changing its attitude to how it counts its allies while formulating a strategy to reverse its political isolation. Dennis Engbarth reports.
James Huang: ‘In the global village, Taiwan has many advantages’
In the face of intensifying pressure on Taiwan’s external relations from a rising China, as shown by the August 6 break in ties with oil-rich Chad, Foreign Minister James Huang shares his views about the country’s external strategy with Dennis Engbarth.
India’s government has recognised the importance of tackling the country’s infrastructure deficit and is prepared to invest to help solve the problem. The results of this investment could provide excellent lending opportunities for banks. Kala Rao explains.
The Monetary Authority of Singapore is beefing up its banking laws, but the city state’s bankers do not seem to be complaining, writes Michael Imeson.
Tabare Vázquez: the president recently demonstrated Uruguay’s economic strength by announcing it would prepay $916m of IMF debt it owed in 2007
Monica Campbell reports from Montevideo on the new Uruguayan government’s successful efforts to revive the economy and strengthen the banking sector.
Víctor Marcelo Oten, head of Crédit Uruguay, the country’s sixth-largest bank
Banks are posting healthy results in an improving economy, financial reforms are under way and there are plans to develop the capital markets. Monica Campbell reports.
Danilo Astori, finance minister of Uruguay, wants to define the central bank’s objectives more clearly
Danilo Astori, finance minister of Uruguay, tells The Banker of his optimism regarding a settlement of the pulp mill row and why Mercosur members should be free to make bilateral trade agreements with whoever they choose.
Fernando Calloia, president of BROU
Banco de la República Oriental del Uruguay continues to be dogged by its state-owned status and weak demand for credit. Jason Mitchell reports from Montevideo.
Uruguay’s free trade zone, Zonamerica, is bringing in much-needed investment, although it has its critics. Monica Campbell reports.
