The Banker Shorts – Week ending May 5, 2023

Last week we brought you our May cover story, which explored just what a bank really is, we continued our coverage of ‘The Banking Saga’ following JPMorgan’s rescue of First Republic, and we questioned the value of the UBS-Credit Suisse deal. We also got into the nitty-gritty of both derivatives trading and transaction banking.

Opinions spanned from looking for a successor to ring-fencing and the resolution regime in the UK, to the coming of age of fintech (is tech culture to blame for the US banking worries?), to asset recovery following fraud.

We brought you the latest edition of The Banker Board, covering the latest people moves, The Banker Midweek podcast featured a special guest, and Fintech Fortnightly outlined essential news in the fintech world.

Asia editor Kimberley Long was in Incheon, Korea covering the ADB annual meeting with key interviews.

Trending topics

• Cover story: What is a bank? – Anita Hawser | Click here to read

What is a bank? It sounds like a simple enough question, but ask fintechs, e-money providers, regulatory and financial services experts — even the average person on the street — and you will probably get a multitude of different answers.

“The traditional definition of a bank as a deposit-taking institution is a good starting point,” says Reinhard Höll, a partner at McKinsey in Germany. “But does it tell the whole story? No, and it definitely does not cover everything.”

• JPMorgan rescues First Republic, but what next for US banking stocks? – Anita Hawser | Click here to read

Four US banking failures – Silicon Valley Bank, Silvergate Capital, Signature Bank and now First Republic Bank – in a matter of months. Many are now hoping that JPMorgan Chase’s $10.6bn acquisition of most of First Republic’s assets and deposits marks the end of a disturbing chapter in US banking history.

• How does UBS’s takeover of Credit Suisse stack up financially? – Anita Hawser | Click here to read

More than a month on, how does the ‘shotgun wedding’ between UBS and Credit Suisse look in light of both banks’ first quarter results? 

• The wide-ranging rules of the new EU crypto regulation – Anna Carrier | Click here to read
• UPI testing for OTC trades now available – Sarah Kocianski | Click here to read
• The era of financial messaging coexistence is here – Bill Lumley | Click here to read
• Supporting the business models of tomorrow – Joy Macknight | Click here to read

Opinion sharers

• Big Bang 2.0: should ring-fencing of banks be phased out? – John Thanassoulis | Click here to read

“It is now almost 15 years since a number of major UK financial institutions failed, which put millions of retail bank accounts at risk. This was part of a global financial crisis that sparked a wave of reforms around the world. 

“In my view, there is another way to reduce the regulatory burden that ring-fencing has created while protecting deposits.”

• Are you there, God? It’s us… fintech – Liz Lumley | Click here to read

“One take I have yet to see, and one that does and does not hark back to the global banking crisis, is that these traumas are all part of adolescent growing pains of a naïve tech community and nascent fintech sector.”

• Asset recovery in cases of fraud: is it possible? – Mark Cooper | Click here to read

Globe at a glance

• The Banker’s Top 30 Nordic Banks 2023 – Anita Hawser | Click here to read

While Norwegian banks have performed well in this year’s rankings, two Swedish banks stand out in The Banker’s Top 30 Nordic Banks ranking by Tier 1 capital and best-performing categories — though for different reasons.

• IMF Africa director: “African countries are at the brutal receiving end of climate change” – John Everington | Click here to read

“Climate adaptation is undoubtedly the immediate issue facing much of Africa now. Carbon emissions are not a major issue for any country in the region beyond South Africa, while most countries are at the brutal receiving end of climate change.”

• Proposed AI regulation presents challenges for Europe – James King | Click here to read

Regular items

• Editor’s Blog: Bank of the Year Awards 2023 – open for entries – Joy Macknight | Click here to read
• Fintech Fortnightly – May 3, 2023 – Liz Lumley | Click here to read
• The Banker Board – May 4, 2023 – Simon Duffy | Click here to read

Sound and vision

• The Banker Midweek | May 3, 2023 | Click here to listen

This week Liz Lumley, Sam Friend and special guest Brett King talk about First Republic’s sale to JPMorgan, the rebirth of Deutsche Bank, AI regulation in the EU and the latest announcement from Twitter’s ‘bad boyfriend’. Also, we discuss our new podcast from The Banker – Banking in the shadows with Anita Hawser. 

• The Bank of Year Awards 2023 – how to enter | Click here to watch
• Assessing Saudi Arabia’s economic transformation | Click here to watch
• Biman Prasad, deputy prime minister and minister of finance, Fiji – View from ADB 2023 | Click here to watch
• Dinesh Khara, chairman, State Bank of India Group – View from ADB 2023 | Click here to watch
• Andrew Leigh, assistant minister of charities, competition and treasury, Australia – View from ADB 2023 | Click here to watch