Social unrest and a government that turns a blind eye to problems means Argentina’s future looks bleak, reports Karina Robinson from Buenos Aires.

A boom in Spanish covered bond issuance has been good news for the savings banks. Head of capital markets at Caja Madrid Carlos Stilianopoulos tells The Banker about dealing with commercial banks, cooperation with smaller cajas and plans to extend the market abroad.
“By definition, a triple-A market is relatively boring,” according to Carlos Stilianopoulos, head of capital markets at Spain’s Caja Madrid. But if he is right that Spanish covered bond issuance has grown by 90% in the past year, then a little excitement is surely justified – especially for Caja Madrid, which is at the heart of it.

Anthony O’Connor reports on why covered bonds are becoming a favourite funding tool for banks.
Although the legislation has been in place for Spanish banks and financial institutions to issue cedulas or covered bonds since the early 1980s, it is really only in the past couple of years that issuance has boomed. According to market data compiled by savings bank La Caixa, at mid-December 2003, nearly -60bn of cedulas hipotecarias – covered bonds backed by residential mortgages – are outstanding from nine issuers, with 32 transactions to date. Equally striking are figures for the end of 2003, which show that cedulas hipotecarias will account for about 13% of all mortgage funding, almost double that of 18 months ago. But opinion is split about why cedulas are becoming a favourite funding tool.

Ben Aris spoke to the Russian bank’s CEO about the rationale behind the deal and the outlook for Russia.

Russian banks dominate the top ranks in The Banker’s first analysis of the fastest growing Europeans.

The government’s rescue of Ashikaga regional bank illustrates that, while Japan’s economic outlook has improved, there are still areas of concern.

After a long-term presence in India, HSBC has surprised everyone by buying into the local banking sector in an apparent strategic shift, writes Kala Rao in Mumbai.

Surrounding countries may be in turmoil but Jordan’s banks are laying expansion plans that include Iraq, as Rupert Wright reports from Amman.

Helena Frith Powell talks to Paul Fokam, chairman of Afriland First Bank. He outlines how the bank intends to become a leader on the continent, while remaining relevant to Africans and working to reduce levels of poverty.

The financial sector is finally catching up with the demand for Islamic banking services. This year hopes to see the ground-breaking establishment of the IBB, which will cater to UK Muslims while also hoping to attract business from further afield.