Foreign banks are under attack in Mexico for charging high fees although the criticisms have been rejected by the Mexican Association of Banks. In September, Oscar Levin, head of the Mexican government’s banking consumer protection agency, sided with those taking a bleak view of Mexico’s banking system by delivering a report that slammed the institutions for charging high financial service fees.

Bond issuance in the six Gulf Cooperation Council (GCC) states has more than quadrupled so far this year as high oil prices, massive liquidity and booming economies have sent issues soaring. The relatively new Sukuks (Islamic bonds) have played a key part in the rapidly expanding Gulf bond market, rising by a factor of 10 this year and accounting for almost one-third of the total issuance.

In a surprise move, Barclays announced in late September that it was in early discussions to buy a majority stake in South Africa’s second biggest bank, ABSA Group.

Oman’s largest bank, BankMuscat, and the second largest bank, National Bank of Oman, have agreed a merger in a move that will greatly strengthen BankMuscat’s operations both at home and abroad. The merger follows NBO’s $130m loss in 2003 and a number of senior management changes in recent months. The effective date of the merger is expected to be 1 January 2005, subject to receiving regulatory approvals. NBO’s net worth as of the end of December 2004 has been put at RO100m ($256m)

Nestor Kirchner, the president of Argentina, has reinforced his authoritarian reputation by replacing the country’s central bank president.

The World Bank may have turned 60 but it should not be too late for the group to change, says Richard H Frank.

The row in Greece over whether the former government massaged its 2000 budget deficit figures to qualify for EMU entry demonstrates more than ever the need for greater transparency.

Although more domestic and cross-border consolidation in Europe’s banking sector would help to improve efficiency, significant political and structural obstacles remain in place.

The IMF and World Bank urgently need to be more representative of their members to remain useful. But old habits die hard.

A survey has shown that most outside the US would elect John Kerry. But whoever the new president is will make little difference.