June 2018

June 2018

It's time for blue finance

As the oceans reach a crisis point, private capital must be deployed to fund sustainable solutions. Given that the seas are equivalent to the world’s seventh largest economy, finance is more aligned with the deep than has been previously recognized. A handful of bankers and investment managers are leading the way, but success will require a collective effort from across the financial industry.

Top Stories

FX Survey 2018: The trend is your friend…

FX Survey 2018: The trend is your friend…

…if you’re big, fast or specialized in modern foreign exchange. That has led to dramatic changes in the volume-based rankings in our annual survey. Meanwhile, new customer satisfaction ratings give a different insight into the banks’ relationships with their clients.

Near-death experience: when AT1 went to hell and back

AT1 contingent capital bonds are entering their second generation; issuers have begun refinancing the $200 billion asset class, but just two years ago the market looked close to collapse. What took it to near disaster? And how did it escape?

Surveys and Awards

FX Survey 2018: Banks go back to nuts and bolts

FX Survey 2018: Banks go back to nuts and bolts

With a spike in volatility and the opportunity to consign conduct issues to the past, this might have been a turning point for global FX, but faced with a range of challenges, many market makers are retreating to core competencies.

Capital markets

Fintech

Latin America

Asia Pacific

Emerging Europe

Middle East & Africa

Africa

Zimbabwe opens for business

Zimbabwe opens for business

Now Mugabe is gone, one of the poorest nations in southern Africa can see the first signs of interest from international investors, but a chaotic currency regime, heavily indebted economy and looming elections are turning initial euphoria into cautious optimism.

Zimbabwe leaps into the cashless future

While most countries have adopted e-wallets and mobile banking as a result of technological innovation and evolution, Zimbabwe was forced into it because of a financial crisis.

Nigerian banks make a mint from a crisis

Oil prices and currency controls created opportunities for some banks, which reported bumper gains from FX and fixed income last year, but no one is expecting a repeat of that. Can lending keep them sweet?

Ramaphosa promises overhaul of South Africa’s economy

South Africa’s new deputy finance minister took a tough stance on corruption under former president Jacob Zuma – now Mondli Gungubele talks to Euromoney about the embarrassing Zuma years and the Ramaphosa government’s plans to turn the economy around.

Politics sets South Africa on a new path

With the election of Cyril Ramaphosa, there is a new sense of optimism in the country. Bankers talk of Ramaphoria and hail the first signs of a long-overdue improvement in the economy.

Foreign Exchange

CSR

Financial inclusion: The paradox of the city

Financial inclusion: The paradox of the city

As cities around the US see populations increase, so the smaller banks that serve low- to moderate-income urban families are being squeezed out. New York is no exception. Financial inclusion is at risk of becoming an urban myth.

Special Focus

Blue finance: Why marine PPPs could be a win-win-win

Blue finance: Why marine PPPs could be a win-win-win

Managed marine protected areas are an effective tool in coastal ocean conservation. They are also ripe to be included in investment structures. The upsides for everyone may help push the protected area of the world’s seas from 2% to 30% by 2030.

Blue finance: The Philippines declares war on waste

In April Philippine president Rodrigo Duterte took a characteristically drastic step. He closed Boracay. It is an indication of the environmental threat from marine pollution. Can the private sector help clean up the seas?

Blue finance: Fishing for a sustainable solution

Private-sector investors are taking their first tentative steps into sustainable fisheries projects. Alignment of interests and investment returns look good on paper, but there are many practical issues that need to be addressed before radical transformation can occur.

Comment

Sideways: Wall Street’s Washington takeover

The coming move towards a Volcker Rule 2.0 that relaxes monitoring of proprietary risk taking by bank dealing desks has been portrayed as a result of president Donald Trump’s administration finally placing its preferred officials in key regulatory positions.

Columns

How the banking union fell into an Italian abyss

How the banking union fell into an Italian abyss

Despite the latest attempts to stymie them, Eurosceptic populists remain the most powerful political force in Italy – largely thanks to anger at a banking crisis, often fanned by the ECB. Now their approach to power is killing the last chance of fixing the banking union, and possibly the euro.

Front End

Xiaomi shows the [REDACTED] of [REDACTED]

The forthcoming IPO of Xiaomi Corporation – China’s Apple, if you must – is the talk of Hong Kong because it is the first dual-class listing to be allowed on the city’s exchange, but it also serves as a reminder of the inherent ludicrousness of the draft prospectus.