Banks and businesses are being forced to transform how they report liquidity – regulators want them to understand their balances on an intraday basis instead of using end-of-day forecasts. This requires fundamental change but the insight it provides will enable banks to increase controls, decrease operational risk, reduce buffer requirements and offer better services.

The Bank of Japan’s bond-buying plan is bedevilled by contradictions: it seeks to promote financial stability but has triggered inevitable bouts of market volatility. What’s more, the central bank wants low yields and greater inflation expectations. A new communications policy is needed, analysts say.

Russia’s largely https://dat.euromoneydigital.com/authoring/journalist?article=047ac601-56d9-4410-8935-dd211e6a899a#tab10state-owned banking sector needs greater competition to help catalyze private sector investment as the economy enters a new era of permanently weaker growth and lower oil prices, say analysts.

Compressed yields and high valuations in many asset classes are leading more fund managers to employ greater leverage to juice their returns to investor clients.

Despite falling yields on Greek government bonds and renewed interest from international investors, the dire economic outlook and inability to reduce its debt burden means Greece is years away from being able to issue sovereign debt, according to analysts.

Regulation of the global repo market is inching closer – particularly in the US – but is hindered by a lack of consensus on how to proceed internationally, as well as the oft-touted concerns about the impact on credit flows to the real economy.

Basel III, Dodd-Frank and market pressures are forcing banks to bolster their tier 1 and loss-absorbing capital levels on their balance sheets, a process that is under way but far from complete. There are few palatable options on the capital-raising menu.

Middle East businesses are borrowing more as the long-term nature of the burgeoning bond markets brings a greater sense of comfort. They must reveal all in the public documents needed to access those markets, initially an uncomfortable experience for many. But the better financing mix is worth it.

All issuers should be looking beyond the US dollar when seeking new financing. Alternative currencies can bring several advantages, including lower funding costs and greater flexibility.

European pension funds and insurance companies face years of diminished returns because of artificially low yields on long-dated debt. Investors should consider strategies now so that they can mitigate losses when yields start to rise again.