The Banker

04/11/2024

Despite a regional economic slowdown, Latin America’s banks excelled in 2023. The Banker’s rankings show strong capital growth, with Sudameris and Banco Popular leading. Nubank added 19.3m customers, while Mexican banks dominated performance tables.

The region has seen bright banking spots despite strong inflation, subdued global trade and the impact of tighter monetary policies aimed at curbing inflation

04/11/2024

The Dominican Republic is set for 5.1% GDP growth in 2024 as tourism and manufacturing rebound. But fiscal reforms are critical to counter macro risks and climate challenges, experts warn.

Dominican Republic endured a challenging 2023 but an economic rebound appears to be underway

04/11/2024

SocGen’s Q3 results brought a surge in share price amid a management shake-up and strong net income growth. Yet analysts urge caution, as sustained improvement may hinge on CEO Krupa’s strategy and incoming CFO Leopoldo Alvear’s retail expertise.

Unloved French bank Q3 performance surprises market to the upside

01/11/2024

Middle East Islamic banks saw 11% growth in 2023, while Asia-Pacific lagged at 3%. Kuwait Finance House led in profitability with a 55% rise, and Indonesia’s sharia-compliant assets surged 14%, driven by policy support and sector consolidation.

Saudi Arabia and UAE continue to power growth in Islamic banking, as Indonesia proves a bright spot in Asia

01/11/2024

The Dominican Republic’s banks lead central America with a 2.5% return on assets, driven by consumer demand and new opportunities in renewables. Yet, money laundering and climate risks loom, requiring strong regulatory support for sustained growth.

Dominican banks lead the local region by profitability, even as long-term challenges grow in complexity

31/10/2024

The EBA's new interest rate risk in the banking book rules start in Nov, demanding granular, product-level risk reporting from EU banks. This standardisation aims to tackle rate volatility but will challenge smaller banks.

Provision of granular, quarterly data set to test banks’ resilience

30/10/2024

Competition to secure AI talent is heating up as North American banks extend their international lead in the use of the technology and register the most AI-related hires over the past year, according to the latest AI index by Evident.

North American banks continue to dominate top rankings as new leaders emerge

30/10/2024

UK banks beat Q3 expectations as hedges softened interest rate impacts, with Barclays and NatWest raising profit forecasts. But a recent motor finance ruling could cost the sector up to £9bn in compensation claims.

Claims over mis-selling of motor finance products could cost banks more than £9bn

29/10/2024

Smaller banks face rising credit risk as loans to private credit firms grower faster than total loans. Moody’s warns robust risk management is critical, especially for banks with $100bn-$500bn in assets.

Risk management must ‘keep up’ with the pace of growth of private credit, says Moody’s

28/10/2024

Banks face growing criticism over vague net zero plans. With $7tn in fossil fuel financing since 2016, the gap between pledges and actions is stark. Can they balance investor demands while pushing clients to transition?

As climate and transition-related legal risks loom, can banks have their cake and eat it too?

24/10/2024

Finance leaders have urged governments to provide clearer incentives for the low-carbon transition.

CIB CEO Hisham Ezz Al-Arab and Bank Pekao CEO Cezary Stypułkowski warn against over-reliance on banks to fund net zero without policy support.

Private sector cannot bear burden of net zero transition alone, lenders warn

24/10/2024

Banks’ internal controls and risk plans are falling short, and poor corporate culture is a key culprit, writes Tina Mavraki for our Better Banking column.

Poor culture drains resources and inflates budgets — and all before it leads to hefty fines

24/10/2024

While China’s mobile payments are now open to tourists via Visa and Mastercard, the government is pushing its citizens to use the e-RMB, with 180mn wallets now in use.

As mobile payments open to foreign visitors, the country promotes its central bank digital currency to locals

23/10/2024

Bank leaders warn that stricter liquidity requirements could limit economic growth. Sarah Breeden of the BoE urges for pre-positioned capital, while Citigroup chair John Dugan stresses that treating all uninsured deposits alike is a mistake.

Citi warns against ‘blunt tool’ approach with regard to uninsured deposits

23/10/2024

Join us for the latest episode of The Banker exchange

In this instalment, Kate Pender, CEO of Fair4All Finance, talks about recent developments in UK financial inclusion

Kate Pender, CEO of Fair4All Finance, talks about recent developments in UK financial inclusion

23/10/2024

New data from the IFC reveals higher recovery rates in emerging markets, with sub-Saharan Africa surpassing Europe. The IFC’s Federico Galizia urges banks to rethink outdated risk perceptions and co-invest with MDBs for greater returns.

Emerging market loans offer high recovery rates and lower-than-anticipated risk, says data pooled by MDBs

22/10/2024

Six months into the World Bank’s Mission 300, today African leaders meet to attract $90bn for energy projects. Expanding access to 300mn people hinges on regulatory reforms and private sector re-engagement. Can Africa overcome its electricity gap?

Mission 300’s success depends on bold government reforms to reignite private sector investment

21/10/2024

China’s stimulus efforts may not be enough. Economists urge deeper structural reforms as weak demand and export price pressures mount. Experts stress the need for targeted fiscal measures to support housing and consumer confidence.

Economists say the country needs radical reform to avoid prolonged decline

21/10/2024

IIF chief executive Tim Adams speaks about the US election’s impact on global finance, the support banks need for the energy transition, and prospects for EU financial integration and consolidation.

Read more of our coverage of the meetings here: https://on.ft.com/4fdDluc

21/10/2024

As sustainability regulations grow, banks in Asia are creating innovative products like ESG-linked cash accounts to incentivise corporate responsibility

Driven by client expectation, regulatory demand and increased transparency along supply chains

21/10/2024

As rates fall, banks dependent on lending face “pain” without diversifying into fee income, warns McKinsey. High returns lie in wealth management, payments, and trading. Smaller banks must adapt quickly or risk losing margins.

Banks dependent on lending and deposit revenue most at risk

18/10/2024

Banks still fall short on financial inclusion, but a new global taskforce aims to elevate inequality in financial decision-making. As regulators push for change, can banks innovate enough to serve underserved communities?

Stronger laws, tougher disclosure standards and bigger fines amid pockets of resistance

17/10/2024

Public finance must “derisk” transition finance to attract private capital. With £50bn needed annually for net zero in the UK, progress will be slow without stronger incentives.

Barclays says national transition plan needed as UK faces £2.7tn investment gap

16/10/2024

E.Sun Bank’s digital shift, led by CTO Jyh-Shing Roger Jang, focuses on AI-driven fraud detection, risk management, and cloud infrastructure. With over 100 projects in play, Jang envisions a future where avatars replace bank tellers.

The Taiwanese bank has identified over 100 possible AI applications

15/10/2024

TD Bank’s guilty plea in a $3bn money-laundering case caps its US assets at $434bn, impacting growth. The bank must now reduce its US assets by 10% and shift its strategic focus to Canada and TD Securities.

A little-used asset cap comes after years of monitoring failures at the lender and a $3bn fine