Commentary

Here is the strategic importance of trade finance solutions

Reliable and cost effective Trade Finance solutions are of strategic importance to Asian transaction banks. Both local and foreign operations rely heavily upon relationship positioning within trade customer demographics to develop broader market share growth, improved wallet share, lower customer churn and foster value adding product cross sell opportunities.

Here is the strategic importance of trade finance solutions

Reliable and cost effective Trade Finance solutions are of strategic importance to Asian transaction banks. Both local and foreign operations rely heavily upon relationship positioning within trade customer demographics to develop broader market share growth, improved wallet share, lower customer churn and foster value adding product cross sell opportunities.

What you should know about lifting the offshore conversion cap

The People’s Bank of China (PBoC) is likely to lift the RMB 20,000 daily limit on currency conversion for Hong Kong residents, according to the Hong Kong Monetary Authority’s chief executive Norman Chan. As we have long argued, the removal of the conversion cap is crucial to further facilitate the growth of the Hong Kong’s offshore RMB market (see “It’s time to review the personal conversion quota” 3 Apr 2012, and “How will HK maintain its RMB edge?” 25 Oct 2012).

Why debt ceiling vs. capacity debate is hot in Taiwan

When I was requested for comment about the government deficit of Taiwan recently, I told my friends that instead of government deficit, they should focus on the debt ceiling which limits the borrowing capacity of the government. It is because that deficit needs to be balanced by borrowing eventually.

Why it's high time for microfinance to become mainstream

“Microfinance” has been one of the great success stories of finance in the developing world. It’s something that the Western world could learn from. Yes we have Credit Unions, but their share of the market is tiny, and they don’t have an impact on the lower-income sector of the population in any meaningful way.

Evolving Business Models in India’s Mutual Fund Industry

The Indian mutual fund industry has been going through turmoil in the last few years due to uncertain market conditions and regulatory changes. Many firms, predominantly foreign ones, have exited the industry since 2008.

Why India rupee is on its path to recovery

Rupee completed its biggest weekly gain since October 2009 amidst optimism over increasing dollar supply. The INR closed at Rs. 63.50 against the USD. Equity markets traded with a cautious note ahead of the US Fed meet scheduled on 18th September 2013.

Supply Chain Risk – Not a Bank’s Problem?

Supply chain financing is an attractive line of business that is not without its inherent risks. The banking industry understands this but may not necessarily be aware of or may not have the necessary controls to identify all of the red flags.

How banks will benefit from infrastructure services in India

Indian banks are staring at the prospect of an increase in non-performing assets, mainly due to their large exposure to infrastructure sector.  Infra sector has been affected by govt. policies (effects most visible in power sector) and the general economic slowdown, which has resulted in lower demand across-the-board. 

Important flaws of Black Scholes Model most people don't know

In 1973, Fisher Black, Myron Scholes and separately Robert Merton derived the Black-Scholes-Merton (BSM) model, which was rewarded the Nobel Prize in 1997. Despite its limitations, the model has survived until today as the dominant pricing model for standard and exotic European style options.

Should Taiwan join the race of depreciaiton?

The issue of currency depreciation has been discussing in Taiwan for a long time.This is because Korea has successfully depreciated Won assisting export to overtake Taiwan a few years ago.Why can't Taiwan Dollar (TWD) be depreciated in line with Korean Won?

Why RMB globalization is still a long way off

Efforts to globalize the renminbi (RMB) reached a milestone when the currency joined the league of the most-traded currencies for the first time.

Overcoming Asian fragmentation to improve standardisation and automation

As discussed in a previous post, the fragmented nature of Asia Pacific’s financial services market leads to numerous challenges for banks when trying to create a standardised approach to the processing of corporate actions.

Will Qianhai jeopardize Hong Kong’s position?

In mid-2012, the China’s State Council approved the development of the Qian­hai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.

Reforming business compliance for the APAC banking industry

Cyber security continues to be one of the fastest-growing threats to banking institutions.

Why we should rethink the ethics of finance

The changing landscape of finance is a huge subject so let’s start with a short history of banking (thanks here to Wikipedia).

Why customer 'sensation' is important in Asian retail and premium banking (Part 2)

Last week, we took a look at how international banking brands are engaging as many of their customers’ senses as possible, in as pleasurable a way as they can, as a key to creating loyalty through an engaging customer experience. This week, we will take an overview of how bank brands in Asia are actually implementing these principles in practice.