Central banks have dominated financial markets through years of interest-rate repression that inflated bond and equity valuations. Suddenly inflation, running at highs not seen for decades, threatens all this. Do central banks have the credibility and capacity to cope with the monster from the 1970s that has returned with a vengeance?
The transition of most of the global financial markets away from Libor and the adoption of risk-free rates is finally upon us. As the clock counts down to the demise of Libor for all new contracts, the focus is firmly on where the sticking points remain: the ‘tough legacy contracts’ and the US dollar loan market.
Douglas Flint, former HSBC chair and current chairman of Abrdn, talks to Euromoney about climate change, his hope for the future, and how he convinced CEO Stephen Bird to join the firm over fish and chips and a pint in an Edinburgh pub.
Global supply-chain bottlenecks have profound implications for how and where companies will fund their operations in the future. As the lines of ships lengthen outside ports, there’s a macroeconomic cost for banks weighing on loan demand and perhaps asset quality. However, some trade and logistics financing businesses that were previously on the margins of banking are now seizing their moment.
Nazir Razak, who built CIMB from an obscure Malaysian merchant bank to a pan-regional universal player, is the youngest of five brothers. The eldest, Najib, was the prime minister who was convicted for his role in the 1MDB scandal. That pitted the two against one another. In the background of the brothers’ opposition was the legacy of their father.
At the end of each year, Euromoney takes a close look at the performance of 25 key institutions that we cover. Speaking to senior executives at these firms, we assess what went right and what didn’t, together with what might lie ahead. This year, we have also examined the views of those at the top on two important factors for 2022: their own and others’ asset quality, and the disruptive threat of China.
JPMorgan Chase can be a winner in global digital retail banking according to Sanoke Viswanathan, the bank’s head of international consumer growth. With European expansion starting in the UK under the Chase brand and growth in Latin America through a stake in Brazil’s C6, Viswanathan insists his firm is in this for the long haul.
What They Said
‘It’s about Hong Kong, China and the rest of Asia. I want growth on all fronts. I’m investing to get that growth to become reality’Noel Quinn, chief executive of HSBC, is looking further afield for growth
‘For monetary policy to be effective against inflation, it needs to be on-time. That’s going to be a tall order’The world’s central banks have a profound challenge to meet, according to Paco Ybarra, chief executive of the Institutional Clients Group at Citi
‘Most of our clients are now seeing demand picking up. The fact that there are bottlenecks in the supply chain is a frustration’Andy Halford, Standard Chartered’s CFO, summarizes the global theme in supply-chain finance
‘1MDB eventually led me to a choice I long wanted to avoid: between standing up for my father’s reputation and being loyal to my brother’Nazir Razak talks about 1MDB and his disgraced brother Najib
Brought in to help clean up Credit Suisse, the high-profile Portuguese banker has been forced to quit to preserve what is left of its reputation.