2004 - The Banker

Hedge funds: too hot to handle?

Are investment banks playing with fire with hedge funds? Will their increased exposure to the hedge fund community provide more risks than rewards? This month, our capital markets editor Geraldine Lambe examines the lucrative relationship between the banks and the funds, the additional risks attached, if any, and the impact on liquidity during market stress.

• Read More  December

Predictions and contradictions

Never have forecasters been as lost in their predictions for the world economy as at present. The US is said to be in recovery mode but the burgeoning current account deficit was the major topic of concern at last month’s World Bank/IMF meetings in Washington. Fittingly, it is the subject of our lead editorial in this issue.

• Read More November

How the subcontinent was won

Reforming the world’s largest democracy is an enormous task and the role of India’s new prime minister, Dr Manmohan Singh, is critical. But he cannot do it on his own. This month, The Banker profiles the 10 key movers and shakers across the Indian economy, from politicians to bankers. In a unique analysis, Kala Rao focuses on the “Magnificent 10”, what they have done so far and the huge challenges ahead. And as the US election approaches, Karina Robinson explores the US’ willingness to pursue an isolationist foreign policy and go it alone whoever wins.

• Read More October

Bank awards reveal record profits despite global economic instability

The Banker’s Bank of the Year Awards this year reflect a bumper year for profits, as many banks have posted record earnings in 2003 and continue to improve in the first half of 2004. While the global economic recovery remains unsteady and the political environment uncertain, aggregate profits in our Top 1000 listing in July reached record highs, up 65.4% on the previous year.

• Read More September

Delete Merger marks Japan’s reform progress

Last month’s proposal of marriage between MTFG and UFJ would create the largest bank in Japan, but it will only be positive news if the two businesses can be integrated, writes Geraldine Lambe

For the Japanese banking system, recuperation has been a long and painful process. It is only now, after more than a decade of despair, that Japan’s so-called mega-banks are ready to start performing as mega-banks should.

• Read More August

Top 1000 World Banks

This year’s rankings show that not only have profits grown, but so has the size of the world’s biggest banks. Stephen Timewell reports.

Research by Terry Baker-Self, Beata Ghavimi & Matthew Dickie.

The global economic recovery and the return to profitability of the Japanese banking sector after massive losses has helped to produce record profits in the Top 1000 banks worldwide. After a damaging drop in profits of 29.7% in fiscal 2001 and a modest recovery the following year, fiscal 2003 proved to be a bumper year for banks around the globe.

• Read More July

Improving efficiency ratios

The comparative performance of US and international banks during 2003 reveals a drive to increase revenues. Many are operating in a cost-containment mode but some have started to invest in customer-oriented technologies that help to grow their businesses organically.

• Read More June

China corners ‘captive’ market

In an increasingly interconnected world, large financial services institutions (FSIs) are already sourcing their IT and business process services from a variety of international locations. As outsourcing services have evolved from filling tactical gaps to providing strategic cost and quality advantages as well as innovative features, FSIs are tapping supplementary alternatives to India as a location for offshore outsourcing.

• Read More May

Retail banking spurs IT drive

Despite the global economic slowdown of the past few years, consumer banking services have kept pace in terms of total revenues and profits compared with banks’ other lines of business. A sample of large US and international banks with diversified business shows that retail banking products and services profits accounted for $184bn, representing an average of 54% of the total for 2003.

• Read More April

Adobe augments protection

The financial services sector needs secure document management to deal with large volumes of personal and confidential information. Adobe Systems’ new enterprise document control software aims to enable organisations to apply consistent confidentiality, privacy and accountability to electronic documents inside and outside the firewall.

Adobe Policy Server, the latest addition to Adobe’s Intelligent Document Platform, is designed to allow organisations to protect intellectual property, and comply with regulations to protect individual and corporate information. It aims to reduce communication costs by diminishing the need to send sensitive information on paper via physical delivery.

• Read More March

China is hive of updating activity

Activity to update the banking systems is continuing in mainland China, one of the latest moves being Bank of China’s implementation of Summit Systems’ treasury and capital markets software across its interest rate derivatives trading desks.

• Read More February

The costs of Basel II implementation

Dear Editor

I have been following the debate about Basel II in The Banker with interest. To use an insurance analogy, moving from a flat-rate method of assessing motor premiums to one in which premiums depend on the driver’s accident history inevitably provokes opposition from learner drivers and those with poor accident records. But safe drivers are not treated fairly by a flat rate approach. The Basel Committee has been exceptionally transparent in the development of its proposals and this has manifested itself in the controversy reflected in your columns.

• Read More January