The Bracken column

Bracken

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.

Latest articles from Bracken

New regulations mean a more robust industry

February 1, 2010

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.

Roszaini Haniffa says Islamic banking must be handled with care

November 27, 2009

As the world's leaders debate the role of banking and how best to regulate it, there are many elements of Islamic banking that could provide guidelines.

Is harmony achievable in EU dispute resolutions?

October 28, 2009

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.

In the current climate, there has been a marked increase in the willingness of stakeholders to litigate their financial services disputes. Given cost constraints, however, there is also a desire to settle financial disputes out of court or in a tribunal if at all possible. It is therefore a pertinent time to examine the attempted harmonisation across EU member states of alternative dispute resolution (ADR) schemes for financial disputes, especially as the results of the responses to the European Commission's December 2008 consultation paper in this area were published in September.

An investor's perspective

October 5, 2009

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.

During the past two years, investors have faced one of the most challenging environments in living memory. When confidence in banks falters and markets crash, equity and debt investors are left asking: what will aid recovery and help prevent another crisis? We would argue that changes to financial disclosure and reporting are required. Specifically, investing in banks continues to be complicated by inconsistent accounting rules, fragmented regulation and less confidence in management to deliver.

Basel II failures highlight need for regulatory rethink

September 2, 2009

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.

For the past 20 or so years, the global financial community has tried to craft a common minimum regulatory capital standard for banks. The result has been a complicated framework that is not enforced consistently, is constantly under revision, and failed to contain contagion during the 2008 market meltdown. The time is right to consider whether this path continues to make sense.

Towards consensus on dynamic bank provisioning

August 4, 2009

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.

While the current crisis continues to wreak the worst financial havoc seen since the Second World War, it is at best premature and most certainly hazardous to try to draw any conclusions.

Blame property speculation, not bankers, for the crisis

July 7, 2009

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.
The consensus explanation for the global financial crisis is that reckless lending to high-risk borrowers in the US created the credit crunch. This personalises the crisis (bonus-driven behaviour) and simplifies the solution (more state regulation). But this diagnosis is false and the consequent remedy would not prevent the next property boom and bust.

Funding is key

June 4, 2009

The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.
There is a good deal of support for Jacques de Larosière’s February 2009 report on how to 'repair' the EU's financial supervisory and regulatory structures, balancing just enough centralisation with national safeguards to get widespread support. But he barely considers the key question of who will provide funds to tackle a banking crisis if the decisions to save or let a bank go affect more than one country. While funding is a domestic problem, it is also a domestic political tool to be shaped in line with national objectives, national priorities and national beneficiaries.

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