Global Finance

A monthly publication providing news and analysis of global market and economy. Focuses on corporate finance, capital markets, and more.

Articles from Vol. 23, No. 5, May

Africa
South Africa's Standard Bank, Africa's largest lender by assets, has become the first international financial institution to join the IFC's $5 billion global trade liquidity program. The program aims to extend loans to regional banks for on-lending to...
Africa in a Squeeze
AFRICAAfrica faces an uncertain future as its key economies suffer multiple setbacks and and the global slump threatens to constrict the flow of investment.Being positioned on the fringes of a global economy navigating the worst economic downturn in...
Annual Survey: Emerging Market Banks: Africa
AFRICARegional Winner: Standard CharteredLondon-based Standard Chartered has 150 branches in 14 African countries. By concentrating on traditional banking services, such as lending, cash management and trade finance, Standard Chartered has benefited...
Annual Survey: Emerging Market Banks: Asia
ASIARegional Winner: HSBCHSBC conducts business in 20 Asia-Pacific markets outside of China and Hong Kong. In 2008 the bank continued to expand throughout the region, acquiring The Chinese Bank in Taiwan in March, which added more than 15,000 small-business...
Annual Survey: Emerging Market Banks: Cee
CENTRAL & EASTERN EUROPERegional Winner: RZB/Raiffeisen InternationalThe past year has not been kind to banks operating in Central and Eastern Europe. As the global economic crisis has taken its toll on the over-leveraged economies of the region,...
Annual Survey: Emerging Market Banks: Latam
LATIN AMERICARegional Winner: SantanderBanco Santander bet on Brazil and won. Despite a challenging economic environment, including a 2% drop in attributable profit in Mexico and a rise in its Latin American non-performing loans (NPL) ratio from 1.87%...
Annual Survey: Emerging Market Banks: Mideast
MIDDLE EASTRegional Winner: Ahli United BankBahrain-based AhIi United Bank has a clearly defined regional strategy centered on the countries of the Gulf and Egypt, as well as a UK subsidiary. It has developed a significant cross-border banking business...
Charting A Steady Course
ICBC has performed well in a tough environment and continues to evolve in line with its values of innovation and service enhancement.The year 2008 will go down in history as an austere and difficult year for most financial institutions around the world....
China
China's foreign ex- change reserves, the largest in the world, grew at the low- est rate in eight years in the first quarter as export markets cooled and foreign capital in- flows slowed. The re- serves increased by $7.7 billion to $1.95 trillion, representing...
Countries Count Cost of Credit Crisis
GLOBALIt's not just companies that are caught in the fallout from the credit crunch; coun- tries are suffering, too. In the latest as- sessment from risk analysis firm Coface, 47 countries-including the US, the UK, Japan and Germany-have seen their fi-...
Credit Default Swaps Have Quiet Big Bang
The "Big Bang" in the credit default swaps market on April 8 wasn't exactly the shot heard round the world. WhUe the CDS market underwent major infrastructure changes to standardize the insurancelike contracts and facilitate centralized clearing, there...
Europe in Crisis
EMERGING EUROPEMany of Europe's former star economies are still struggling to find their feet after falling prey to the credit crunch.Emerging Europe is on the edge of a precipice. Already a number of countries, including Romania and Serbia by the end...
Financial Giants Face A Mighty Challenge
Established financial centers are seeing their dominance challenged in the aftermath of the credit crunch.In early April, as leaders from the Group of 20 countries gathered with the expectation that they would usher in a new world of global financial...
FX Update
Commodity currencies become the focus of investor optimismRisk appetite appears to have improved in recent weeks, especially since early March, as global investors attempt to catch the bottom of the financial markets downturn and allocate fresh funds...
G-20 Sets out the New World Order
GLOBALThe G-20 meeting in London in April was groundbreaking for the scale of the resources committed to the IMF and the unity of a divene group of nations to combat global recession. But the legacy of the G-20 will be greater still: It marks a historic...
Help or Hindrance?
DEVELOPMENT AIDMounting concern over the economic prospects of the world's poorest nations is encouraging developed nations to reassess their aid policies.As Group of 20 leaders descended on London for last month's summit, most had global economic recovery...
India
Just three months after the management of Satyam Computers, India's fourth- largest software company, confessed to accounting fraud, the company was acquired by Tech Mahindra, another Indian software company. Tech Mahindra, which is pardy owned by British...
Low Inflation Sees Fed Print More Money
UNITED STATESConsumer prices in the United States fell unexpectedly in March, posting their first 12-month decline since 1955. It is clear that the recession is keeping a tight lid on prices and is providing cover for the Federal Reserve to continue...
Mexico First to Tap Imf Credit Line
MEXICOConcerned about a weakening peso and possible 2010 fiscal gap, Mexico has turned to Washington for assistance for the first time since its 1995 financial crisis. President Felipe Calderón announced plans to activate a $47 billion IMF credit line...
Middle East
The real liquidity crisis in the Middle East, as well as in parts of Asia and Africa, is the shortage of water, according to a report by Standard Chartered Bank. Consumption of fresh water must be strictly limit- ed to the most productive uses, it says....
Morgan Stanley Leads in First-Quarter M&A
Morgan Stanley advised on $219 billion of mergers and acquisitions worldwide in the first quarter of 2009, beating out J.P. Morgan's $203 billion total to take the lead in Thomson Reuters' rankings of top financial advisers. Each firm advised on 70 deals...
Risk Management Remains Undervalued
GLOBALRisk management is still not considered a core strategic function at some of the world's biggest investment hous- es, according to a survey by research group Sim- Corp StrategyLab. De- spite all the talk given to the importance of risk management...
Russia
The first meeting between US president Barack Obama and Russian president Dmitry Medvedev, at the Group of 20 summit in London in early April, appeared to lay the foundation for an improvement In relations, which had plunged to fresh post-Cold War lows...
The Best Emerging Market Banks 2009
BEST EMERGING MARKET BANKSIn our 16th annual survey of top banking performers in emerging markets, we name those banks that are consistently providing high levels of service in fast-evolving markets.The results of the best emerging market banks varied...
Unsponsored ADRs Attract Investors, Boosting Volume in OTC Securities
CORPORATE FINANCING FOCUSOf the more than 1,000 unsponsored American depositary receipt programs created in the wake of last October's rule change by the US Securities and Exchange Commission, a handful are attracting significant trading interest, helping...
Worries about Funding Deficits Come to Fore
Deficit financing has replaced interest rates as the driving force in the currency markets, analysts say. As short-term rates converge toward zero, their influence on currency values is dissipating and the focus of market participants is shifting to...