A bank employee recently asked me: "As a trader, my bonus is derived directly from my profit and loss, which is accrued over the quarter and kept in a separate account. It does not go into the firm's bottom line and then back out to me. Also, like most traders, I accrue 2% of my gains in a loss provision account in case I have a major write-down in the year. My bonus is 10% of my profit for the year. If I make $50m for the year my bonus is $5m. What does my bonus have to do with the mortgage-backed securities [MBS] trader who is sitting on losses? Did I or did I not show a profit of $40m to the firm's bottom line?"

The economic advisor to the Russian president explains why he is cautiously optimistic about the country's economic prospects for 2010. Interview by Philip Alexander.

The former prime minister of New Zealand and now chairman of New Zealand Post Group's fast-growing Kiwibank believes that the company offers a template for post groups around the world attempting to establish a banking brand. Writer Michelle Price

The senior vice-president of global IT operations at Nasdaq OMX, Carl Magnus Hallberg, explains how co-location is making trading faster and why exchanges are becoming more like technology companies.

In the drive to improve customer service in banking, the need for better identity tracking is growing. By Chris Skinner

The financial crisis of 2007-08 had an immediate impact on the world's economies, with deep recession experienced across the globe. The longer-term impact on the banks will also be significant, as regulatory authorities learn lessons from the crash and implement new supervisory rules. Regulation arising as a result of the crash will indeed heavily influence bank business models, compared to what was practised in the past decade. In this article we discuss how banks will have to adjust their strategy and approach in response to new regulatory requirements.

An internationally agreed upon bankruptcy code, a global regulatory framework that allows banks to grow, less reliance on technology and a stronger focus on risk management are the key actions that must be taken in light of the past two years. Interview by Silvia Pavoni.