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World Bank in a spin
Against a backdrop of change at the top of both the World Bank and the IMF, Jane Monahan reports on how the two institutions are responding to changing demands in a global economy and their efforts to remain relevant.
The weakest link
As stock markets wobble, bank capital ratios come under increasing scrutiny. But perhaps this is the wrong tack and instead liquidity is a better way of determining a bank’s stability. The Banker asked rating agency DBRS to look into the matter.
A new paradigm
Pakistan is implementing a new development paradigm for the country’s banking sector with the aim of bringing the country’s poor and rural population into the system, writes Dr Shamshad Akhtar.
AsiaNs must act in unison
Chalongphob Sussangkarn took over as Thailand’s minister of finance in March, following the resignation of his predecessor Pridiyathorn Devakula. A former president of independent economic think-tank the Thailand Development Research Institute, he is a key player in the interim government that was installed last year after a military coup. He spoke to Simon Montlake in Bangkok.
In search of the right recipe
Banks are trying to open up the bond markets in sub-Saharan Africa and one idea being floated is for governments to work together to raise multi-issuer bonds. But are the IMF and aid donors standing in the way of the markets’ development? By Nigel Dudley.
A big leap for a Chinese giant
ICBC chairman Jiang Jianqing talks to The Banker about the Chinese market, the bank’s recent growth and its long-term strategy to become an international player.
Green light for sustainability
Cynics argue that banks’ new-found green credentials are primarily about protecting market share, while banks argue that without the latter there is unlikely to be a commitment to the former. Neil Tyler finds out which banks are setting the pace.
Nurturing a public private partnership
On its 25th anniversary, the Institute of International Finance is well placed to facilitate a new world order involving the sharing of responsibility for global financial stability between multinational financial services firms and governmental institutions, say Dr Josef Ackermann (left) and Charles H Dallara (right).
Strong ties help smallfry survive
Alessandro Azzi, chairman of Federcasse
In some of Italy’s communes, a credit co-operative is the only bank. David Lane reports from Rome on the continuing attraction of these small institutions to their Italian customers.
Savvy private banks snap at heels of state stalwarts
Vaughn Richtor, the managing director and CEO of ING Vysya Bank
India’s smaller, fast-growing private banks, with their healthy loan books, dynamic managers and the latest technology, are the banks to watch, says Kala Rao .
Room for more sharia compliance
A new Islamic bank has opened for business in London, bringing the number of standalone, wholly Islamic banks in the UK to three. Is the market big enough? Michael Imeson reports.
The City makesa head startfor hub status
The market for Islamic banking is forecast to grow at double the rate that conventional wholesale banking will grow in the next five years. Unsurprisingly, banking centres around the world are scrambling to establish footprints in the market. Natasha de Terán investigates how London is positioned.
Why london should learn tolove brussels
High standards of governance will be essential to convince local investors to participate in the regional financial centres that are springing up around the world. And London looks set to benefit from business with those centres as they adopt EU-style regulations, writes Brandon Davies.
CZARs chew over coming clean
While some eastern European mega companies are improving corporate governance and listing abroad, others are moving back closer to the state. Ben Aris explains.
Plenty of room for derivativesin project finance space
Robin Baker, SG CIB
Large numbers of energy and infrastructure projects across the globe have been funded through the use of project finance, opening up established and emerging economies to new forms of economic growth. Banks compete fiercely to fund these deals, but face a host of complex risks. Natasha de Terán explores how they manage them.
Including Africa
Jean-Louis Ekra explains why Afreximbank has introduced a carbon financing programme.
Pips squeak as screws tighten
Albert Pintat, Andorra’s prime minister
The OECD is stepping up efforts to force offshore jurisdictions to toe its line on information sharing and taxation. But as Nick Kochan reports, smaller jurisdictions resent being targeted while OECD members such as Luxembourg and Switzerland appear to escape such censure.
Mind the value gap
In India, long-term value is being left on the table as environmental, social and governance issues are ignored. But these issues will be increasingly important competitive differentiators, writes Dan Siddy.
The spectre of latin american inflation
Felipe Larraín assesses whether policies by certain Latin American populist governments could undermine present price stability and usher in a return of the high inflations of the 1980s.
Another world, another business
People are using avatars to develop businesses and have fun in virtual worlds, such as Second Life. Karina Robinson reports on the growing response from banks and the potential they could tap.
A foundation built on security
Mike Lazaridis, president and co-CEO of Research in Motion (RIM)
Alan Duerden speaks to Mike Lazaridis on the accountability, back-up and security capabilities incorporated into the latest generation of BlackBerry smartphones targeted at the small and medium-sized office.
Collaring market villains
With increased competition, fragmentation and diversity in asset classes, the job of exchanges and regulators around the world in surveying their markets is becoming increasingly difficult. Serious investment is required to stay ahead of the fraudsters. Alan Duerden explains.
The risks of severe, infrequent events
Too little is made of the fact that financial market institutions have been underprepared to measure, manage and price high-impact risks; indeed decision makers are actively rewarded for underestimating risks associated with low-probability events. Nassim Nicholas Taleb (left)and George A Martin (right) explain.
What the economists say
With the subprime crisis in the US causing worldwide reverberations, we asked a group of leading economists to consider whether a soft or hard landing was in prospect. They also considered sovereign wealth funds, the renminbi and the roles of the IMF and World Bank.
Joseph Stiglitz, Professor, Columbia University
1. Is the world economy headed for a soft or hard landing?
There is a serious risk of a hard landing. The good news is that the engines of growth for the world economy have become more diversified (even if interlinked). Weaknesses in the US economy may be offset with continuing strengths in Europe, China and India.
Professor Norbert Walter, Chief Economist, Deutsche Bank Group
1. Is the world economy headed for a soft or hard landing?
That depends on whether we can reduce the current account imbalances, especially in Asia. Emerging markets with export-led growth and resource exporting countries have amassed enormous foreign exchange reserves.
Warner Max Corden, Emeritus Professor of Int’l Economics, Johns Hopkins University
1. Is the world economy headed for a soft or hard landing?
Probably a soft landing, but one cannot be sure.
Charles Dumas, Director, Lombard Street Research Ltd
1. Is the world economy headed for a soft or hard landing?
The world economy is in a long landing, rather than hard or soft. The Eurasian saving glut has forced over-borrowing to compensate, and the resultant weakening of balance sheets is an increasing force, whereas the Eurasian surplus flow of liquidity is diminishing.
Charles Wyplosz, Professor of International Economics, Graduate Institute of Int’l Studies, Geneva
1. Is the world economy headed for a soft or hard landing?
A soft landing is already under way. There are two inter-related reasons for being reasonably optimistic. First, today’s financial markets are a lot more sophisticated and resilient than they used to be. If a shock occurs, it is likely to be digested without dramatic systemic implications.
David Wyss, Chief Economist, Standard & Poor’s
1. Is the world economy headed for a soft or hard landing?
It’s barely landing. The US has sneezed, and the world says “Gesundheit”. The US slowdown is having less impact because it is not the only locomotive anymore. Growth this year will be about the same as last year, continuing the recent record string.
