Commentary

“Basel III” is familiar as the outcome of the financial crash of 2008. Western governments demanded almost instantaneous reaction to the bailout of some of its largest banks (no Asia-Pacific bank had to be nationalised) but it was the entire global economy that ended up with the higher capital and liquidity requirements associated worldwide with the name of a small town in Switzerland. And now the world’s banks have to gear up for these more onerous demands of the regulator.

The RBI cut the repo rate by 25 basis points as expected.The unexpected hawkish stance was a shock for most commentators,what with the inflation ebbing and international crude oil prices too coming down below the pschological $100 barrel level.

Banks in Asia Pacific have traditionally processed corporate actions on an end-of-day or even a T+1 basis but due to market and regulatory changes, are looking to move to an intra-day process.

When Asian banks look to their European and US counterparts they see the polar opposite of their own post-GFC lending and banking reform initiatives. Euro wide German led austerity measures contrast starkly with Japanese stimulatory ‘Abenomics’, US quantitative easing and other inflation boosting banking reforms in the region. Economic growth and business confidence, generally gauged by lending market activity, is slowly beginning to build stronger impetus. Overall lending growth is still sluggish in relative terms, with a number of Asian countries such as Indonesia, Malaysia and Thailand still struggling to rise up off the canvas following knock out blows by the Asian Financial Crisis of the late 90’s. However South Korea and the Philippines were also adversely affected by the same crisis but have managed to achieve strong lending growth of late - why is this so?

By focusing on operational excellence, a path to creating value for their customers, banks could build customer loyalty, increase earnings while reducing fees charged to recover transaction costs. 

Internal Auditors, Cost Accountants and Relationship Managers are among the candidates in hottest demand this quarter across Asia, according to the Hays Quarterly Hotspots.

Earlier this year, Standard Chartered Bank launched a novel display card solution in Singapore. While the card looks and functions like a regular payment card – debit, credit and ATM - the Display Card has touch-sensitive buttons and an embedded LCD screen, combining features such as EMV payment, One-time Password (OTP) generation and transaction signing for e-banking.

In the recently concluded 5th BRICS Summit in Durban, South Africa proposals for a new BRICS led development bank were floated and discussed. While the summit failed to finalize plans on the proposed bank’s operations and structure, a ‘broad consensus’ has emerged within the BRICS nations for the need of an alternate multi-lateral development agency operating outside the ambit of the World Bank and its sister agencies.

Even though the principles of financial services consumer protection have been around in Asia for a number of years, there seems to be little desire to embrace the concepts of fair treatment as a strategic tool to reduce the risk of poor customer outcomes.

When it comes to Asia, digitalisation is crucial for businesses to succeed. No matter what the industry, sector or location, companies must be both online and mobile to deliver the experience their customers expect.

Many commentators have pointed out the circle of money that is quantitative easing and which has been responsible, ultimately, for the record highs observed this year of the Dow Jones and FTSE equity indices. Central banks print money, which is used to buy government bonds.

Mobile wallets will be the next battleground among businesses from various sectors – including financial institutions (FIs) in the fight for ownership of the consumer relationship. 2012 witnessed the introduction of myriad mobile wallet trials, and the mobile wallet wars will only continue to grow in 2013 and beyond.

A lot has been said about ATM Technology in Asian Banking and Finance. The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United Kingdom and the United States.

The ongoing Libor scandal is one of the most serious breaches of control in an industry where risk and compliance failures are routinely front page news.

According to ADB's recent news release showing that a gap of some USD 425 billion between importers and exporters among developing countries is to be facilitated in 2011.

Two days before the Singapore's announcement, financial institutions in Taiwan formally launched their RMB business after signing currency clearing agreements with Bank of China's Taipei branch.