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
In the dark days at the start of the 2009, few expected financial markets to recover as they did. Even fewer expected records to be broken. They were. Writer Geraldine Lambe
In such volatile times for the financial sector, strong branding is more important than ever. The Banker’s Top 500 Banking Brands listing ranks the leading brands. Brian Caplen reports.
Up to speed: Tokyo Stock Exchange’s new ‘arrowhead’ system is on a par with the dealing systems in New York and London
Tokyo’s new arrowhead trading system is among a raft of high-performance upgrades to be launched across Asia-Pacific trading venues, bringing them up to speed with their US and European competitors. Writer Elton Cane
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
Not so wonderful Copenhagen? December’s climate meeting in the Danish capital is widely considered to have achieved little, with the US and China reluctant to commit to the UN process on carbon emissions
Much was expected but little emerged from the climate talks in Copenhagen late last year. Moreover, with debate in the US focused on financial regulatory reform, discussion about the cap and trade system got pushed back. In Europe, market participants are worried about the move from government-allocated carbon credits to market auctions. The carbon world is not where it wanted to be. Writer Jim Kharouf
Masami Tada, chairman and CEO of Daiwa Capital Markets Europe
The chairman and CEO of Daiwa Capital Markets Europe talks about the business’s shift from Japanese securities house to pan-Asian investment banking presence with a European footprint. Writer Geraldine Lambe
Cloud computing and software-as-a-service are gaining popularity in the banking industry, but some reservations remain, particularly concerning security. How well-founded are these concerns and how can they be assuaged? Writer Nicholas Pratt
Back with a bang: Lloyds achieved Europe’s largest fully underwritten capital-raising exercise to date
The 22.5bn recapitalisation of Lloyds Banking Group last November not only kept the institution free from outright government control, but helped to rehabilitate the financial markets. Writer Edward Russell-Walling
Build up: reinforcement of the Thai financial sector is planned to pave the way for increased international trading
Unfazed by continued political and economic turmoil, Thailand is embarking on major deregulation to strengthen its banking and finance sector and, in the grander scheme, to diversify the country’s economic base. Writer Michelle Price
Arab Bank: boasts the largest branch network in Jordan
The impact of the global downturn and tighter regulations imposed by Jordan’s central bank looks set to change the future shape of the country’s banking sector. Writer Stephen Timewell
Jim Bolger, chairman of New Zealand Post Group’s Kiwibank
The former prime minister of New Zealand and now chairman of New Zealand Post Group’s fast-growing Kiwibank believes that the company offers a template for post groups around the world attempting to establish a banking brand. Writer Michelle Price
Majid Al-Refai, CEO of sharia-compliant Bahrain-based Unicorn Investment Bank
After a turbulent year bookended by the near default on a large Dubai sukuk, the Middle East’s Islamic banking community is taking stock. Writer James Gavin
The Banker surveyed some of the leading lights in the world of global transaction services to get a sense of how 2010 is likely to pan out. The results suggest a difficult year for transaction bankers, with as many challenges as opportunities. Writer Charlie Corbett
Banks which have received state aid are desperate to give it back because of the constraints under which it places them. Governments, too, want out of the banking system but both camps face a host of potential pitfalls before this mutually desired exit strategy can be executed. writer Geraldine Lambe
The Banker looks at the top 10 emerging technologies that have the potential to transform the planet - from wireless electricity to anaerobic digesting. Writer Michelle Price
Timetable: although RBS is selling its insurance businesses it must still meet the Solvency II directive
Banks that own insurers are preparing for the Solvency II insurance directive, which in its current form could require huge amounts of extra capital to be set aside. Meanwhile, investment banks are busy advising their insurance clients on how their risk management and capital structures will have to change as a result. Writer Michael Imeson
The US and European governments have so far managed to maintain investor appetite for greatly increased issuance of public debt. But decisive action will be needed to avoid paying a high price in the near future. Writer Philip Alexander
Andrew Burton, director in the liability management team at Credit Suisse
The successful debt restructuring by Ukraine’s gas importer has eased short-term difficulties and offered hope for better government and corporate financial management in the future. However, the country’s track record of disappointment in such matters still hangs heavy. Writer Philip Alexander
Which way now? Puerto Rico’s banking district
Puerto Rico’s dependence on the US meant that the subprime crisis hit its banking sector particularly hard. A period of consolidation is now expected, but who the winners will be - the big domestic players or foreign-owned entities - remains to be seen. Writer Jane Monahan in Puerto Rico
Getting the message: the formation of NAMA has led to protests in Ireland
The Irish government has opted for a ‘bad bank’ to save the nation’s finances by buying up bad loans. With some experts unconvinced this was the best solution, only time will tell if the gamble pays off. Writer Philippa Maister
Having sidestepped the worst of the global financial crisis, the dominance of Australia’s big four banks in the domestic market means that further major expansion is likely to happen elsewhere, particularly in Asia. Writer Elton Cane
Great potential: the use of credit cards in Iraq is on the rise
A muscular banking sector will make or break whether Iraq is to rebuild and prosper. And while there are increasing levels of capital inflow into the region, local banking infrastructure remains limited, leaving the sector wide open for foreign investment. Writer Courtney Fingar in Baghdad
As customer dissatisfaction with the UK’s existing high street banks intensifies, new entrants are sprouting - many of which are extensions of established retail brands, striving to create the winning formula using their innate consumer insight. Will these new operations pose a sustained threat to the existing ones? Writer Michelle Price
Ray Soudah, founder of Switzerland-based Millenium Associates
Deutsche Bank’s planned takeover of Sal Oppenheim will leave the German private banking sector dominated by two key players. However, Deutsche and Commerzbank are pursuing very different strategies. Writer Michael Marray
Brazil’s past battles with hyperinflation have left the legacy of a payment system whose efficiency assists its economy’s stability to such an extent that it has garnered a host of global admirers. Writer John Rumsey
Distinguishing between banks’ funds and shareholders’ equity has become increasingly difficult as the rise of hybrid capital instruments has introduced grey areas to the financial sector. Writer Charles Piggott
It seems that many are. This summer has seen both BATS and Nasdaq launch flash order programs, but was this an attempt to compete with Direct Edge - which has been successfully using the controversial program since 2006 - or did the rival exchanges simply want to force the hand of the regulators? Writer Michelle Price
As US regulators set about tightening the rules on commodity derivatives trading, banks fear the changes may do more harm than good. Geraldine Lambe reports.
UniCredit: CEE strategy now paying dividends
In early 2009, shares in Austrian and Italian banks were pummelled by investors fearing that their exposure to central and eastern Europe would threaten balance sheets. Now they are fighting back, and staying safely in profit. Writer Philip Alexander
The past 18 months have been among the worst times that many bankers have ever known. The challenges have required all of their skills to manage their institutions through stormy waters. The winners of The Banker’s 10th Bank of the Year Awards - in association with UK Trade & Investment - have successfully done this and are now preparing to reap the rewards.
Alain Papiasse, CEO of BNPP CIB
BNP Paribas’ acquisition of Fortis has considerably increased the size of the bank’s Corporate & Investment Banking arm’s balance sheet. The French bank says now is the time to use it to win advisory business. Writer Geraldine Lambe
Stable structure: Jakarta’s central business district has experienced growth throughout the global economic slump
Policy reforms in Indonesia’s banking sector have transformed shareholding structures and foreign investors have scooped up local banks. But further change is needed to enable the country to cope with an anticipated economic explosion, say local bankers. Writer Michelle Price
Although Greece currently has the lowest sovereign rating in the eurozone and the highest budget deficit ratio, its membership was enough to reassure investors that its 15-year issue in November was a safe bet. Writer Edward Russell-Walling
Moody’s says defaults will peak this year, but distressed debt investors say the default trend has only just begun. Writer Suzanne Miller
Terry Gibson, senior vice-president and head of product management at SGX
The senior vice-president and head of product management at the Singapore Exchange discusses its major post-trade infrastructure project. Writer Michelle Price
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.
As the world’s leaders debate the role of banking and how best to regulate it, there are many elements of Islamic banking that could provide guidelines.
The Taming of Merrill
The roll-out of the hyper-fast Chi-X alternative trading platform across the Asia-Pacific region and a shake-up in supervision in Australia signal the makings of a more competitive pan-Asian market. Writer Michelle Price
The Russian retail banking sector has survived the crisis largely intact, and the change of focus from growth to funding and risk management could have long-term benefits for its resilience. Writer Philip Alexander
Lamido Sanusi, governor of the Central Bank of Nigeria
Firing the chief executives responsible for mismanaging Nigeria’s banks has been the first step to fixing the country’s financial problems. Now the system is more transparent, Central Bank of Nigeria governor Lamido Sanusi is spelling out his vision for banking reform and stability. Writer Peter Guest
Whatever happens at the UN meetings in Copenhagen this December, the carbon markets will have to re-examine the structures put in place by the Kyoto Protocol, not least the Clean Development Mechanism. But is it beyond repair or just in need of a tune-up? Writer Jim Kharouf
In demand: Gazprom’s headquarters in Moscow
Gazprom, one of the world’s largest energy companies, has responded to its downgraded ratings with an ambitious issue of commercial paper in western Europe. The surprising outcome may have implications for years to come. Writer Edward Russell-Walling
As rising unemployment promotes higher rates of customer delinquency, banks are having to get to know their customers all over again. Decision science can help. Writer Nicholas Pratt
Margarito Teves, secretary of the Department of Finance of the Philippines
The Philippines’ finance minister says that the archipelago’s economy has remained relatively resilient during the downturn compared with its export-dependent neighbours. But the budget deficit remains an ongoing problem. Writer Michelle Price
Michel Preti, CEO of Socit Gnrale’s Corporate & Investment Banking
The CEO of Socit Gnrale’s Corporate & Investment Banking has revamped the management and organisational structure of the bank to break down silos between business lines and build out its advisory business. Writer Geraldine Lambe
Santiago: centre of one of the most dynamic economies in South America
With one of the most liberalised economies in the world, prudent policies, and trading links with the Far East, Chile is poised to emerge from the downturn as a Latin American front-runner. Writer Jason Mitchell
Anthony Belchambers
CEO, Futures & Options Association
Regulatory bodies are directing their might at systemic weaknesses within the financial system, but there is a chance that they might go too far in chasing the wrong priorities.
The Taming of Merrill
Jhanna Sigurdardttir, prime minister of Iceland
Nowhere was hit as hard by the credit crisis as Iceland, but as the country rebuilds its economy and banking sector, it is determined to learn from this harshest of lessons.
Caio Koch-Weser, Vice-chairman, Deutsche bank
Global leaders must find a common policy to tackle climate change, and must do so immediately, regardless of the additional challenges posed by the economic downturn.
Pravin Gordhan, South Africa’s minister of finance
South Africa’s finance minister talks about the steps taken to steer his country towards economic recovery.
Sir Winfried Bischoff, chairman of Lloyds Banking Group
The UK is positioned to play a key role in assisting the development of new and emerging financial centres.
Andrs Velasco, Chilean finance minister
Chile’s prudent fiscal policies have enabled it to weather the global recession well. The county’s finance minister explains the thinking behind them. Writer Jason Mitchell
China’s ambitions for an international financial centre in Shanghai are now clear. It has staggering market growth and a supportive policy environment, but there are still significant barriers to overcome. If China can realise its ambitions, will it be Shanghai that wins the prize? Writer Geraldine Lambe
The public clamour to cap bankers’ bonuses is being acted upon with varying degrees of urgency and strictness by governments and regulators around the world. Writer Edward Russell-Walling
Technology, in the guise of mobile and smart-card banking, is bringing the remote sectors of India’s population within reach of the country’s banks. Writer Rekha Mehon
Kofi Annan, chair of the Africa Progress Panel and former secretary-general of the UN
Without support from the international community, the economic crisis will cause Africa to fall further behind the developed world and plunge millions into poverty.
Korn Chatikavanij, Thailand’s Finance minister
The Thai finance minister’s belief that the global crisis has presented the country with an opportunity to reshape its economy has seen him unleash plans for greater use of the capital markets, diversified exports and a boost in domestic consumption. Writer Brian Caplen
Jacques de Larosire, Chairman of the Strategic Committee of the French Treasury
There is a meeting of minds around the world on how best to reform the financial system, but enforcing these principles in a consistent way will still be difficult.
The FSA’s new regime to plug the holes in the UK’s liquidity risk management system is being criticised by the sector as overzealous and potentially harmful. Michelle Price reports.
After years of easy finance, companies across the world have had to face up to some harsh realities since the onset of the financial crisis. As credit dried out at the end of last year, they were forced to diversify their financing options and squeeze liquidity from within. Writer Charlie Corbett
Good neighbours: Colombian president Alvaro Uribe (left) shakes hands with Peruvian president Alan Garcia
While the Western world has been struggling through the global financial crisis, Latin America has shown a remarkable resilience to the upheaval. Two countries in particular - Colombia and Peru - are showing particularly impressive growth, and look set to become important emerging economies. Writer Jason Mitchell
Even though the majority of sub-Saharan countries are cash-driven, a string of initiatives are being rolled out across the region to take bank notes out of transactions where possible. Telcos, financial companies and reforms by the central banks are leading the way in Kenya, Ghana and Nigeria. Writer Wendy Atkins
Visible presence: Anheuser-Busch InBev, which owns a non-controlling 50% stake in Grupo Modelo, which brews Corona, was an early entrant to the debt markets this year
After a dismal 2008, the fixed-income sector has bounced back in 2009 thanks to government intervention steadying investors’ nerves. The turbulent economic climate has favoured the low-risk bond market but, as revenues and deal volumes have risen, not all of last year’s major players have retained their market shares. Writer Joanne Hart
Mark Goldstein, head of liability management practice for Europe, Middle East and Africa at JPMorgan
JPMorgan’s head of liability management in London is building the business from the bottom up. He is a new arrival at the bank following the acquisition of Bear Stearns, creating a new team as the bank makes a foray into debt restructuring. Writer Philip Alexander
Bosnia’s central bank in Sarajevo
The global slowdown has not spared Bosnia-Herzegovina, but the conservative strategies of many local banks have given them some support and protection. Writer Philip Alexander
Five decades of neglect left Africa’s agricultural sector in a parlous state, but last year’s food crisis galvanised global opinion that something must be done - and soon - to transform the continent’s vast potential into reality. Financing small farmers is the first step. Writer Charlie Corbett
The regulatory authorities of Islamic finance have been working to bring greater clarity to the relatively young sukuk asset class, but the market will need time to digest the implications. Writer Philip Alexander
The fall-out from the Lehman Brothers collapse exposed the true extent of risk in the over-the-counter derivatives market and highlighted the need for change. While there is still no clear path for the market’s future, it is not too difficult to anticipate what the Obama administration has in store for the sector. Writer Janet Lewis
Rupiah Banda, the new president of Zambia
Rupiah Banda, the new president of Zambia talks about his vision for transforming the southern African state’s economy in the light of a severe economic downturn. Writer Charlie Corbett in Cape Town
Anthonia Hui, chairman and CEO of AL Wealth Partners
The impact of the financial crisis has been felt particularly hard in the wealth management industry, where client trust is low, the appetite for risk has disappeared, and customers are expecting frequent and time-consuming reassurances from their wealth managers. Writer Silvia Pavoni
John Killey, head of Citi realty services for Europe, the Middle East and Africa
The growing threat of energy insecurity poses many risks to corporate institutions worldwide. Some banks are now looking to take greater control of their energy infrastructures - but there are several challenges to overcome. Writer Michelle Price
On top of the economic slowdown, Trinidad has other matters to contend with, including the government bail-out of its largest insurance company, Clico, and the acquisition of its second largest bank, RBTT, by Royal Bank of Canada. Writer Brian Caplen
Paul Volcker, former chairman of the US Federal Reserve and chairman the US’s economic recovery advisory board
The order in which the world will emerge, post-recession, may still be unclear, writes Paul Volker, but a long slog can be expected. However, when the dust settles, there will still be few competitors to challenge the US dollar as the world’s predominant currency.
At the helm: Umut Shayakhmetova, CEO of Halyk Bank
In May, The Banker examined the fate of Kazakhstan’s fallen giant, Bank BTA. The Kazakh banks that have stayed solvent now explain their recovery strategies. Writer Philip Alexander
Left to right: Simon Parry-Wingfield and Ben Babcock
HeidelbergCement has successfully restructured the debt accumulated from its Hanson acquisition with the help of Morgan Stanley, who were tasked with Europe’s largest-ever stressed refinancing exercise. Writer Edward Russell-Walling
Rob Mandeno, global head of FX spot and e-commerce at Deutsche Bank in London
As the credit crisis took hold, foreign exchange trading, regarded as a reliable source of profit, surged in popularity among investors. Now, as trading volumes begin to return to pre-crisis levels, the inference is that confidence is slowly returning to the global economy. Writer Charlie Corbett
Natural resource: Guyana’s rich forests may be fruitful in boosting the country’s economy
The Guyanese government is looking to the small South American country’s vast, untouched rainforests as a means of promoting eco-friendly development. Writer Brian Caplen
Camilla Taylor, an investment advisor at carbon trading fund Trading Emissions
The world is waiting with anticipation for the December climate summit in Copenhagen, where the world’s biggest polluters, the US and China, are expected to announce proposals that could significantly reduce global emissions. Writer Hamish Risk
Dixit Joshi, Appointed head of equities for EMEA and Asia-Pacific at Barclays Capital
The acquisition of Lehman Brothers’ US capital markets and investment banking arm presented Barclays Capital with the ideal circumstances for its return to equities. Writer Geraldine Lambe
