In the spotlight: global banking

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Euromoney’s round-up of recent coverage of industry trends, including regulation and capital-raising – the US M&A trail, leverage-ratio fight, tier 1 issuance and the banking union drive – and an investigation into illiquidity in the corporate bond market. We also explore trends in bank M&A in the Middle East, the competitive landscape for lenders in Saudi Arabia, recovering banks in the CEE – and China’s grey financial sector, among other things.

 

Regulation and capital-raising:

 

Mergers & acquisitions: Banks must sell equity or businesses

Mergers & acquisitions: Banks must sell equity or businesses

Euromoney September 2013

Eurozone banks still have a way to go in deleveraging, but investor concern over weak disclosure might close access to equity.



Bank capital: Additional tier 1 takes off at Société Générale

Bank capital: Additional tier 1 takes off at Société Générale

Euromoney September 2013

Leads the way with low-trigger temporary write-down deal; Regulators will push banks to issue



European banking: Investors doubt banking union plan

European banking: Investors doubt banking union plan

Euromoney September 2013

Survey says banking union will not reduce default risk; SSM set-up could be pushed into 2014



Macaskill on markets: Charlie Brown banks are losing leverage

Macaskill on markets: Charlie Brown banks are losing leverage

Euromoney September 2013

The recently discovered regulatory zeal for a focus on gross leverage ratios at banks, rather than capital assessed on risk-weighted assets, is creating a new set of problems for some of the biggest dealers. Barclays and Deutsche Bank in particular have been put on the back foot by the regulatory bait and switch, which comes at an awkward time – just as key engines of their profitability, such as rates trading, are sputtering.


Sideways: Where time is not money

Euromoney September 2013

The untimely death of an intern at Bank of America prompted a spate of headlines about the long hours worked in the City of London and Wall Street. Forcing junior staff to put in exceptionally long hours is clearly counterproductive in any sector of banking, as it is in other industries. But the practice reaches a peak of pointlessness in corporate finance, where the Bank of America intern worked. Pure corporate finance, such as mergers and acquisitions or advisory work, is the area in the City where the greatest nominal effort is applied to the least practical effect.


 Regulation

Regulation: The battle to sketch the new face of global banking

"I had a discussion with a very senior regulator recently who told me: 'Look, I know we’ve gone too far too fast on some of this and that we’ve made some errors, but I’m afraid I don’t know how to stop this process’. Now that’s quite scary." 

 


Investigation into corporate bond liquidity:

 

Dealers divided over ability of Street to provide bond liquidity

Dealers at the world’s biggest trading firms say the bond market correction in June, where big orders even in government bonds moved markets dramatically, demonstrated how dramatically liquidity has drained from the bond markets.

Deutsche Bank nears launch of new fixed-income trading platform 

The leading e-trading investment bank has been working with other dealers and buy-side clients on new bond trading platform Oasis, Euromoney reveals.


Here comes the great bond liquidity drought

Euromoney September 2013

Liquidity in the world’s bond markets has reached crisis point. Investors can no longer rely on banks to provide a crucial intermediary function in secondary markets. It’s now time that investors took responsibility and did something about the liquidity challenge themselves. Failure will be disastrous for global financial markets. Euromoney investigates. 



 


Emerging markets:

 

Middle East: M&A shakes up regional banking

Middle East: M&A shakes up regional banking

Euromoney September 2013

Bank M&A in the Middle East has accelerated over the past year. Although regional events and global markets are already throwing up tests, the motivation for deals is still stronger than ever.



Ins and outs of Saudi banking: infighting yet outstanding

Ins and outs of Saudi banking: infighting yet outstanding

Euromoney September 2013

A buoyant local economy means Saudi banks are riding high, but they remain over-exposed to their domestic market.



Bank shortcomings exposed as Chinese economy founders

Bank shortcomings exposed as Chinese economy founders

Euromoney September 2013

The Chinese economy is growing ever more slowly – probably slipping even faster than officially admitted, and from a base whose size is possibly exaggerated too. In the midst of this, the orthodox banking sector is doing unorthodox things on a grand scale, while being undermined and bypassed by an even more unorthodox grey financial sector.



Picking winners: Recovering CEE banks get tough

Picking winners: Recovering CEE banks get tough

Euromoney September 2013

With growth finally returning to the region, emerging Europe’s big banking players are focusing on the most profitable markets and punishing hostile or incompetent policymakers.



Andean banks go regional

Andean banks go regional

Euromoney September 2013

Banks in Chile, Peru and Colombia are building platforms across the Andean region as a single commercial market between the three countries develops.




Middle East debate: Gulf dynamism drives regional transaction banking

Middle East debate: Gulf dynamism drives regional transaction banking

Euromoney September 2013

Euromoney speaks to providers and users of transaction banking in the Gulf region about the market’s growing importance and the localization of expertise.