The Banker magazine has been recording change for 80 years and so our journalists (even though none of us dates back quite that far) are well used to, if not a little blasé about, the phenomenon.
But even slightly cynical as the profession demands us to be, no Banker journalist can fail to be bowled over by the current hive of activity in the industry.
Our cover story, written by investment banking and capital markets editor Geraldine Lambe, looks at the new investment banking model, pioneered by Goldman Sachs and copied by rivals, in which investment banking earnings are only 5% of the total and the drivers of the business are trading and principal investments.
As impressive in terms of transformational change is the extent to which so many banks are now engaged in cross-border activity on every front: in wholesale, in retail, in insurance, asset management and back office. Fortis CEO Jean-Paul Votron tells editor-in-chief Stephen Timewell how the Belgian bank is extending its reach through acquisitions, joint ventures and white-labelling, on page 127.
So powerful are the forces of change that political reservations are being swept aside, allowing National Bank of Greece to buy a 46% stake in Turkey’s Finansbank in early April. This month we carry reports on both Greece and Turkey.
Political and regulatory initiatives shape and reshape markets and there are always winners and losers. The after-effects of September 11 was to keep Middle East money in the region providing liquidity for burgeoning capital markets there (see our special supplement on the UAE), while in Europe those who want to stay ahead of the game in the securities business must keep on top of the Market for Financial Instruments Directive (MiFID). For help see our supplement on page 45.
But before the reshaping comes the politics. Karina Robinson investigates the impact that the Mexican elections may have on banking on page 106. Other countries explored in this issue include Portugal (where the political environment has improved), Thailand (where things are uncertain), Romania, Ukraine, Saudi Arabia and Lebanon.
With the African Development Bank meeting taking place in Burkina Faso in May, this issue focuses on the continent. Economics editor James Eedes looks at China’s role in the region and profiles the countries of east Africa. Unilever’s CEO is bullish about African development in this month’s Viewpoint.
Finally, when talking about rapid change, technology must be in the mix. The ascent of electronic trading is now moving on to over-the-counter business, as we report in FX and derivatives, but banks need to watch the liberties their traders are taking with spreadsheets, as technology editor Dan Barnes notes on page 130. If you blinked and missed some changes over the past months, catch up here.
