Infomation-warehouse

The world has come a long way since the lurid headlines of 2008 warning that support for the banking sector would cost governments around the world trillions of dollars. While dangers still persist, money is steadily starting to return to government coffers. Writer Geraldine Lambe, Research Geraldine Lambe and Guillaume Hingel

Street life: the streets of Rawalpindi are busy but Pakistan’s banks are making only steady progress. KASB is one of the country’s smaller banks
Despite an extremely challenging fiscal, political and security environment, Pakistan’s banks have remained remarkably resilient. But high interest rates, low economic activity and a bruised consumer portfolio continue to suppress loan growth. Writer Michelle Price

John Macaluso, Fiserv’s chief technology officer and senior vice-president of bank solutions
The market for core banking systems is booming, spurred on by institutions looking to provide better services and products in an increasingly competitive environment. But methods of achieving these goals vary by region and institution. Writer John Beck

Obstacles to growth: Iran’s banks, among then the Export Development Bank of Iran, face myriad challenges, such as UN sanctions and a poor infrastructure and technology take-up throughout the country
The UN sanctions that are restricting the activity of Iran’s banking sector may be tough, but they are not stopping those determined to do business. Writer Spencer Anderson

Firm foundation? The solidity of Bucharest’s biggest landmark, the Palace of the Parliament, belies the shaky state of the Romanian economy
Greek banks control at least a fifth of the banking markets in Bulgaria and Romania but, despite this exposure to one of Europe’s more troubled economies, bankers in the two countries believe there will still be a sufficient supply of credit to meet demand. Writer Philip Alexander

Substantial barriers impede investment in the infrastructure required to meet the global surge in energy demand over coming years. It is critical to break down these barriers, otherwise the world faces a potentially bleak and very dark future. Charlie Corbett reports.

High-profile: The BTA restructuring deal is one of the largest of its kind
The debt restructuring deal for Kazakhstan’s BTA Bank was signed in May 2010, but a bitter dispute between the current and former owners of the bank continues to cast a shadow over its future. Writer Philip Alexander

Shipshape: the Isle of Man says its financial regulation is more watertight than that of the UK
The UK’s offshore financial centres do not deny that they have accommodating tax regimes, but they baulk at the label ‘tax haven’ and all the negative connotations that tag brings. Writer Charlie Corbett

The European Commission’s MiFID review should enhance the competitive environment in Europe in a manner that will deal a second, more decisive blow to Europe’s exchanges. But the latter are not going down without a fight. Writer Michelle Price

Sukuk missing: Saudi state oil giant Aramco’s greenfield refining and petrochemical project at Jubail is to go ahead without Islamic project bond funding
The capital markets were deemed too fragile to issue a riyal-denominated Islamic bond to help fund Satorp’s greenfield refining project in Saudi Arabia, but that doesn’t mean this type of asset funding has gone away. Project sukuk are becoming well known in the Middle East as Islamic finance-friendly products. Writer James Gavin

Stephan Leithner, Deutsche Bank’s co-head of global client coverage and chairman of the corporate finance executive committee
Deutsche Bank’s co-head of global client coverage and chairman of the corporate finance executive committee explains how the bank’s performance during the crisis has opened new doors for it both in Europe and the crucial US market. Writer Geraldine Lambe

The global financial crisis, and subsequent fears of European sovereign debt chaos, have overturned traditional notions of risk-free assets and heralded a new mood of caution among investors. Writer Joanne Hart

Collective thinking: Leeds’ approach is to sell itself as a region, rather than just a single city
The UK’s regional financial centres are undergoing a financial and cultural renaissance. They are shrugging off the effects of the downturn, establishing themselves as viable alternatives to London and growing in both confidence and maturity. Writer Charlie Corbett

Forty years after BankAmerica topped The Banker’s first global bank rankings in 1970, the US-based bank has once again taken the number one spot in 2010. While Bank of America, JPMorgan and Barclays all participated in 1970 and 2010, this 40th anniversary of the listings shows that much else has changed in the sector. The Banker’s editor emeritus Stephen Timewell reports.

Forty years after BankAmerica topped The Banker’s first global bank rankings in 1970, the US-based bank has once again taken the number one spot in 2010. While Bank of America, JPMorgan and Barclays all participated in 1970 and 2010, this 40th anniversary of the listings shows that much else has changed in the sector. The Banker’s editor emeritus Stephen Timewell reports.

Under review: there have been calls for Bayern LB (headquarters pictured) to be sold following its recent difficulties
The German Landesbanken were hit hard by the financial crisis, and bailouts at both state and federal level have allowed the national government and the EU to increase the pressure for both restructuring and reform. Writer Michael Marray

Good reaction: Chemical company Ineos raised �870m on the high-yield market
The European high-yield market was, for years, driven by leveraged buyout activity. Now corporates are accessing the market in their own right. So, is European high yield coming of age? Writer Joanne Hart

The cranes in Spain: a collapse in Spain’s property market has created significant difficulties for the country’s financial institutions
Once considered one of the better-placed survivors of the financial crisis, the property bubble bursting in Spain has hit the country’s savings banks hard, resulting in calls for consolidation in the sector. Writer Rodrigo Amaral

Martin Egan, appointed global head of primary markets and origination and Arne Groes, global head of flow-credit trading of BNP Paribas
BNP Paribas has had a good crisis. Now, after a reorganisation at the top level of the investment bank, the challenge is to consolidate the gains it has made and expand its US and Asian presence, a task that its new global head of primary markets and origination and global head of distribution are relishing. Writer Joanne Hart

Poor harvest: but Banco Galicia, a leader in the agricultural sector, closed 2009 with a $301.5m profit
Despite the twin threats of the worst drought to strike South America in decades and the continuing fallout from global financial crisis, Argentina’s lenders have survived relatively unscathed. And now a debt swap offer could allow the country to access international credit markets. Writer Silvia Pavoni

Towering presence: Uzbekistan’s National Bank headquarters in Tashkent
Uzbekistan’s banking sector is lagging behind the country’s broader economic growth, stymied by the interfering hand of the state. Writer Michelle Price

Transport hub: Erste Group Bank has financed the extension of Dubrovnik Airport in Croatia
With help from multilateral institutions, transport infrastructure finance deals in the new and aspiring EU members are still being completed, but on much more conservative terms. Writer Philip Alexander

Bob McDowall, research director for Europe at TowerGroup
An unprecedented overhaul of the securities industry is taking place under politically mandated reform. This is forcing markets and regulators to work more closely together to ensure that there is no repeat of the recent financial crisis. Writer Frances Maguire

Fuelling prosperity: the Tema oil refinery near Ghana’s capital, Accra
Ghana’s entry into the club of African oil producers has placed its economy in the spotlight, with revenues from its up-and-coming oil industry expected to address the country’s fiscal deficit. Writer Daniel Maalo

Despite a sense of optimism at the Asian Development Bank’s 43rd annual meeting last month, Asia-watchers warn that there may still be trouble ahead due to a disruptive influx of foreign capital. Writer Michelle Price

Banks that ignore the huge numbers of people who remain outside the financial system may be missing an opportunity to improve their image and increase their profits. Silvia Pavoni reports.

Rural support: in an effort to create social stability, China has allocated more financial support to farmers
As the global crisis weakened other major economies, China’s huge lending spree sent its growth soaring, but it must hope that in having made credit so loosely available it has not inadvertently planted the seeds of a future home-grown crisis. Writer Brian Caplen

Speculative trading has been blamed for price spikes in energy and other commodities markets, but many economists point to growing demand from Asia as the real cause. Writer Geraldine Lambe

The much-anticipated competition in Australia’s cash equities markets is finally taking hold, but hopeful new entrants may yet be stymied by the challenges presented by the clearing and settlement infrastructure. Writer Elton Cane

Standing tall: the DIFC’s headquarters, The Gate, is a symbol of Dubai’s wealth
In addition to the global financial crisis, the Dubai World debt quandary has provided another test for the emirate’s banks. Nevertheless, positive signs are emerging. Writer Daniel Maalo

William Vereker, co-head of global investment banking at Nomura
Nomura is making an audacious bid to turn itself into a global investment bank, and its co-head of global investment banking is happy with the progress made so far. Writer Geraldine Lambe

As Russian capital markets activity revives, second-tier investment banking groups have ambitious plans to share a larger slice of the business. But competition is tough. Writer Philip Alexander

The Kazakhstan government is strongly promoting the development of Islamic finance in the country to diversify its financial sector, with strong support from Abu Dhabi. Writer Philip Alexander

Troubled since 2005, the UK credit card industry has been suffering a severe test of profitability. But credit card issuers are hoping to rejuvenate the industry by moving to a more convenience-focused, sustainable and transparent business model. Writer Nik Pratt

Aiming high: Well-capitalised banks such as Banamex are giving cause for optimism over Mexico’s future
Mexico’s ties to the US economy, its well-capitalised banks and the business-friendly reforms it has in the pipeline mean the country is perfectly positioned to ride the wave of any global economic recovery. Optimism is such, that there is even talk of the country being classified alongside the BRIC economies. Writer Silvia Pavoni

There are two clear leaders at the front of the investment banking pack, but a battle is being waged immediately behind them - and there is everything to play for. Geraldine Lambe reports.

Ikbal Daredia, managing director and head of capital markets and institutional banking at Unicorn Investment Bank
The market for Islamic bonds, or sukuk, is expected to pick up in 2010, but its appeal will remain limited until the industry can agree a set of global standards and proper legal protection for creditors in case of default. Writer Charlie Corbett

Index on the up: Ho Chi Minh Stock Exchange, Vietnam
Bank lending is being used as a direct and often blunt lever by which to manage Vietnam’s economy, proving a critical first defence against the global economic slump. But the medium-term consequences of over-interference may be another bubble, warn analysts. Writer Michelle Price

Cleaning up: the FDIC plans to bring a more grassroots style to the US banking industry
The Federal Deposit Insurance Corporation, under the tutelage of chairwoman Sheila Bair, has been spearheading a banking clean-up on a massive scale. And while the sector faces much uncertainty, one thing is sure: the US banking landscape is set to change for good. Writer Suzanne Miller

Rescue call: BTA had to be bought out by national wealth fund Samruk-Kazyna
Kazakhstan’s banks are divided between those that are cash-strapped and looking at restructuring, and cash-rich survivors trying to find new lending opportunities. Writer Philip Alexander

Jean-Eric Pacini, head of structured products sales for BNP Paribas in London
When the bear market left investors with structured products that were deeply out of the money, investment banks drafted rescue plans to win back client loyalty. Writer Philip Alexander

Christopher Dodd, Connecticut Democrat and chairman of the US Senate banking committee
In the process of attempting to win support for regulatory reform within the US banking industry from both Republicans and financial institutions, concerns are being raised that too many concessions are being made, thus limiting the intended impact of the proposals. Writer Jane Monahan

The iPhone could potentially make major inroads into the underutilised world of mobile banking and consumer finance with its easy-to-use interface and ever-growing range of cheap, downloadable applications. However, obstacles remain. Writer Nicholas Pratt

Nomura (l-r): Ed Boyce, Ed Matthews, Peter Bell
Nomura’s retail investment banking team - effectively acquired from Lehman Brothers in 2008 - is taking advantage of a recovery in the UK’s retail industry. Writer Edward Russell-Walling

On the move: Colombia has embarked upon a $24bn infrastructure programme
Hindered by years of armed conflict and governmental infighting, Colombia has launched a long-awaited infrastructure development programme, set to pump $24bn into its ailing transport network and, in turn, stimulate healthy competition among its banks as they bid to provide funding. Writer John Rumsey

Alex Ehrlich, the global head of prime brokerage at Morgan Stanley
The client-base, funding model and counter-party trust upon which the prime brokerage business grew so successful was badly damaged by the crisis. Almost 18 months on, however, the industry is regrouping. Writer Michelle Price

Foreign policy, fiscal pressures, financial reforms and far-reaching litigation are all provoking a flow of cases that threaten to overburden international banks doing business in the US. But the banks are fighting back. Philip Alexander reports.

Tapping into high-frequency: TSE’s Arrowhead system is as fast as those of New York and London
After five years plagued by setbacks, the Tokyo Stock Exchange has raised its game with the launch of its Arrowhead trading system in January. The exchange’s next goal is to successfully accommodate the increased flow of alternative trading in order to cement its position as a rival to the more established centres in the US and Europe. Writer Charles Smith

Canadia Tower: a symbol of Cambodia’s growth period prior to the international financial crisis
Cambodia’s government-engineered slowdown after five years of unsustainable economic growth could not have been implemented at a worse time, coming as it did just before the global financial crisis. Consequently the crisis has hit Cambodia’s banks hard, though just how hard is a matter of some debate between the IMF and the country’s senior bankers. Writer Brian Caplen

Derek Sammann, managing director of financial products and services at CME Group
US and European regulators want as many over-the-counter derivatives as possible to be traded on exchanges or cleared through a central counterparty but the foreign exchange market will not go quietly. Writer Frances Maguire

With the economic environment still uncertain and markets often volatile, last year’s deals demanded every ounce of tenacity and expertise available at corporates’ relationship banks. The Banker’s Deals of the Year are testament to those qualities.

Following the recession, investors have steered clear of US transport projects, while the federal and local governments have shied away from increasing toll revenues, despite the country’s lack of investment in its roads and bridges. But now the US infrastructure market is slowly embracing a European solution: private capital. Writer Suzanne Miller

Missing out: the Philippine Stock Exchange has lost major domestic listings to the Singapore Exchange
A move to fully integrate ASEAN capital markets by 2015 is proving a powerful driving force for pan-ASEAN economic integration. Writer Michelle Price

Ga�l de Boissard, co-head of global securities
Credit Suisse’s co-head of global securities explains how the bank’s capital model has helped it survive the crisis in good shape, and thrive in the aftermath. Writer Geraldine Lambe

The long-term prospects for takaful Islamic insurance are good, given its focus on populations that are currently underinsured. But intense competition is squeezing profit margins in the short term. Writer James Gavin

Left to right: Felipe Portillo, Simon Aird, Nick Koemtzopoulos, Mark Echlin, Vikram Khanna, Sam Andrew
Aluminium giant Rusal’s IPO listing on the Hong Kong stock exchange - a first for a Russian company - left the Credit Suisse team managing the deal biting their nails right up until the start of trading. Writer Edward Russell-Walling

Jacek Rostowski, Polish finance minister
Poland has emerged as the most resilient economy in the EU during the global slowdown. However, The Banker’s European Finance Minister of the Year is determined to stay ahead of the pack, and is now prioritising bringing down the country’s budget deficit. Writer Philip Alexander

Bank of Greece, Athens: EU officials visited the Greek capital in January to assess the government’s crisis strategy
The leading Greek banks had retained relatively conservative business models at home prior to the financial crisis, but market fears about government debt make the downturn even harder to manage. Writer Philip Alexander

Before the storm: former Argentine central bank governor Martin Redrado (left) and president Cristina Kirchner in March 2008. Less than two years later, Ms Kirchner was to attempt to remove Mr Redrado
The ’soap opera’ surrounding the protracted dismissal of the Argentine central bank governor by president Cristina Kirchner has damaged the country’s international image and highlighted major weaknesses within its institutions. Writer Jason Mitchell

Irena Krumane, chair of the Latvian Financial and Capital Market Commission
Flooded with Scandinavian liquidity during the boom years, Latvia has suffered the most severe bust in the EU and bankers are devising a new business model while clearing up the consequences of the old one. Writer Philip Alexander

UBS has endured a catastrophic three years. Now, under the stewardship of former Credit Suisse chief Oswald Gr�bel, the bank is attempting to restore its reputation and revive its business. Geraldine Lambe reports.

Mark Lewellen, head of European corporate origination at Barclays Capital
China has had an inflationary spike, Australia is raising rates and more are expected to follow suit. This has prompted a flood of bond issuance from businesses and governments ahead of fears about rising rates. When more central banks signal that they are in a neutral and tightening mode, what will this do to the debt capital market? Writer Joanne Hart

At your inconvenience: in 2006, Vietnam had only 46 ATMs for every 1 million people
Vietnam’s large unbanked population and its growing middle class present a major opportunity for local and foreign banks alike, who see vast potential in the country’s underdeveloped retail banking and consumer finance sectors. Writer Michelle Price

Franck Petitgas, global co-head of investment banking, Morgan Stanley
The global co-head of investment banking at Morgan Stanley discusses the turnaround of the company’s fortunes and says the firm’s success in investment banking is just the beginning. Writer Geraldine Lambe

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.
A bank employee recently asked me: “As a trader, my bonus is derived directly from my profit and loss, which is accrued over the quarter and kept in a separate account. It does not go into the firm’s bottom line and then back out to me. Also, like most traders, I accrue 2% of my gains in a loss provision account in case I have a major write-down in the year. My bonus is 10% of my profit for the year. If I make $50m for the year my bonus is $5m. What does my bonus have to do with the mortgage-backed securities [MBS] trader who is sitting on losses? Did I or did I not show a profit of $40m to the firm’s bottom line?”

Growing demand: two women open sharia bank accounts at Bank Negara Indonesia
Leading Islamic retail banks are developing increasingly sophisticated systems to maintain sharia compliance in an evolving market. Writer Philip Alexander

President elect: Sebasti�n Pi�era swept to power in Chile in January
Chile’s new right-wing government has promised to sustain the country’s growth trajectory with a series of reforms, aimed at diversifying its economy, which is highly dependent on the copper industry, and improving conditions for SMEs. Writer Jason Mitchell

Top reformer: Rwandan president Paul Kagame at an East African Community conference in 2007. Rwanda joined the regional economic group earlier that year
Recognised as the world’s top reformer by the World Bank last year, and a member of the East African Community since 2007, the outlook is certainly promising for Rwanda. But the opportunities also come with a high probability for risk. Writer Peter Guest

Small change: Hypo Group Alpe Adria was nationalised late last year for the sum of �3
The nationalisation of Austria’s Hypo Alpe Adria had more to do with regulation and ownership models than exposure to emerging Europe. Writer Philip Alexander