World Bank/IMF special focus: Global economic outlook and financial stability
COPYING AND DISTRIBUTING ARE PROHIBITED WITHOUT PERMISSION OF THE PUBLISHER: CHUNT@EUROMONEY.COM
By: Published on:
In this special edition, Euromoney announces its annual Finance minister and Central bank governor of the year awards; interviews Paul Tucker, deputy governor Bank of England, who outlines his tough message to banks on capital and other regulatory requirements; and presents its country risk index, containing global economic projections and political risk rankings. Euromoney also comments on the current banking boom and its sustainability, and suggests ways to stabilize the financial system.
The finance minister has enhanced his country’s reputation for sound fiscal policy that takes full account of social justice, while a strong regulatory regime has kept the financial sector out of the chaos. Helen Avery reports.
The Bank of England deputy governor understands bankers’ fear of excessive regulatory zeal, but he’s not easing up. He insists banks should improve the quality of their capital and sees no role at all for subordinated debt. He wants strong banks to blow the whistle on the weak and to know that, in future, the shareholders of surviving banks will pick up the tab for bailing out the system. Peter Lee reports
With the international economy more volatile than ever, global investors are paying more attention to country risk analysis. Risk looms both where you most and least expect it. In Euromoney’s latest rankings, the US has fallen out of the top 10. Jacqueline Cutler reports.
Bank business models have to change. Capital requirements will be higher. Leverage and risk will be lower. But there is a danger that regulators will try to make the system too safe. That’s if they ever manage to coordinate their actions. In the meantime, bank leaders are trying to find the best model for their own institutions, while managing the fallout from the credit crunch and second-guessing the lawmakers. A blueprint for banking
Government policymakers and regulators around the world are striving to agree new rules to make the financial system safer. Euromoney has a few recommendations.