The Banker Shorts – Week ending May 26, 2023

Trending topics 

• Tighter supervision for US regionals almost inevitable – Marie Kemplay | Click here to read

The official post-mortem of Silicon Valley Bank (SVB) does not make for an enjoyable read. Michael S Barr, vice-chair for supervision at the Federal Reserve, was tasked with conducting a rapid review of the bank’s failure, and the regulatory and supervisory circumstances surrounding it. And he does not hold back.

• EBRD expands remit to sub-Saharan Africa, but Ukraine still “top priority” – Anita Hawser | Click here to read

The European Bank for Reconstruction and Development’s annual meeting returned to Uzbekistan recently for the first time since 2003, when the meeting’s usual focus on infrastructure investments and the private sector gave way to concerns about the country’s poor human rights track record under former president Islam Karimov.

A new Uzbek government led by reformist president Shavkat Mirziyoyev was eager to stress that “today’s Uzbekistan is not yesterday’s Uzbekistan”.

• JPMorgan leads the pack in EMEA leveraged finance – Edward Russell-Walling | Click here to read

Unlike some of its competitors, JPMorgan emerged from 2022 relatively unencumbered by loss-making deals. “We started 2023 without any overhang from last year,” says head of EMEA leveraged finance Daniel Rudnicki Schlumberger.

• Commerzbank’s restructure pays dividends – Andrew MacDowall | Click here to read
• UK regulator proposals aim at equity market boost – James King | Click here to read
• US banking M&A plummeted in 2022 – Barbara Pianese | Click here to read

Opinion sharers

• UHNW investors pivot to private equity for long-term returns – Joy Macknight | Click here to read

In Campden Wealth’s inaugural Ultra-High Net Worth Private Equity Investing Report 2023, which surveyed 120 UHNW investors in 36 countries mainly in Europe, it details motivations for turning to private equity, the challenges faced and investment processes adopted.

• Is the ‘deposit glut’ a root cause of recent bank failures? – Guillaume Vuillemey | Click here to read

A legitimate question is whether large deposits – of either wealthy households or cash-rich firms – would be more efficiently channelled via savings products outside banks. 

• A world of opportunity is out there – Chris Skinner | Click here to read
• What journey must banks take to become data-driven? – Lenildo Morais | Click here to read

Globe at a glance

• Bolivia’s economic model called into question – Barbara Pianese | Click here to read

Bolivia’s foreign currency crisis reflects several short-term problems, including the rise in interest rates around the world and higher fuel prices because of the war in Ukraine. But it also stems from long-term problems, including the reduction in hydrocarbons exports.

As of February 2023, Bolivia’s international reserves had fallen to $3.5bn, one of the lowest levels since 2014, when the reserves were $15.1bn.

• Dollar scarcity threatens Bolivian banking system – Barbara Pianese | Click here to read
• Qatar’s banks benefit from abundant liquidity and buoyant domestic economy – James King | Click here to read
• Portuguese banks ‘cautiously positive’ – Jules Stewart | Click here to read

People moves 

• The Banker Board – May 25, 2023 – Simon Duffy | Click here to read

Watch and listen

• The Banker Midweek | May 24, 2023 | Click here to listen
• The Banker at ADB 2023 | Click here to listen
• Archil Mestvirishvili, acting governor, National Bank of Georgia — View from EBRD 2023 | Click here to watch
• The Banker’s Top 1000 World Banks 2023 - preview | Click here to watch