A sharp increase in provisioning requirements is likely to drive consolidation in the Spanish banking sector. But the country's largest banks – many of which have remained profitable thanks to their operations in other regions – are cautious about what may lurk on the balance sheets of the troubled savings banks.

High non-performing loan ratios and stringent, ever-changing government policies have put foreign-owned banks in Hungary under pressure. As established players change their footing, allocating a larger proportion of their funds abroad, a number of smaller local outfits are moving in to capitalise on the potential of niche markets.

Indonesia’s finance minister Agus Martowardojo was The Banker’s Finance Minister of the Year 2012, global and Asia-Pacific. He explains the economic polices behind the country's impressive growth.

Keeping Greece in and allowing massive European Central Bank intervention are the best ingredients for saving the eurozone. But the case for common eurozone bonds is less clear.

From sovereign debt woes to political brinkmanship and the swathe of new regulations hitting banks, the events of 2011 have reverberated across markets and around the world. There have been a few bright spots, not least the growing confidence of local currency debt markets, but overall it has been a gloomy year. Most believe the fate of 2012 lies in the hands of European policy-makers.

Many of Azerbaijan's banks were hit by economic slowdown and falling real estate valuations in 2010, and there are signs that a significant shake-up of the sector is beginning.

Political uncertainty and regulation has blighted the progress on the Economic Co-Operation Framework Agreement between Taiwan and China. Now, slowly but surely, agreements are finally being reached that should benefit Taiwan's banks and businesses.

The EU has lost its way. Only by reverting to its original intention – of pooled sovereignty with all members pulling in the same direction for the greater good – can it get begin to recover from the crisis that currently engulfs it.

The International Monetary Fund is being called into question amid fears that it is short of the necessary resources to temper the eurozone crisis and accusations that the historically Eurocentric organisation is not reforming its voting system fast enough to embrace emerging economies.

Emergency measures taken by the major central banks are widely credited for having a stabilising influence on the financial system and the economy. But there are growing concerns about the long-term impact of these measures.