Commentary

Global private equity (PE) firms are stepping up their focus on investment opportunities in Southeast Asia, with deal-making in the region expected to pick up in 2013.

The persistent sluggishness and ominous uncertainty in Europe and United States economies, flanking warnings coming from different multilateral institutions, the continuing debt problems and economic fragilities in EU member countries and looming fiscal cliff in United States, indicate risks of global economic forecasts remaining on the downside in the short to medium term.

China’s evolving financial system has required the central bank to change its tools. Capital outflows and the gradual liberalization of the yuan mean that the era of sterilized intervention is ending. A new governor could move the PBoC towards a more conventional market-based policy, although the overall policy stance is still expected to be set by the government for the foreseeable future. Monetary policy in China has traditionally had three levers: interest rates, reserve ratios and the currency. The State Council (made up of the premier, vice premiers, and heads of various government departments, including the central bank) decides on lending and deposit rates, while the People's Bank of China has discretion over commercial bank reserve ratios. Each can influence policy on the currency, although the State Council has the final say.

Whilst there was general agreement on the need to reform the global financial system after the 2007 financial crisis, the impact of the revised regulations published in 2009 by the Basel Committee on Banking Supervision (BCBS) has been felt far and wide.

A recent study reveals that corporate treasurers are most concerned about liquidity and funding. But should this really be their biggest worry?

Western candidates wanting to work in China’s banking capital, Shanghai, should first get to grips with how regulatory change is creating an increasing number of niche jobs for foreigners.

Islamic banking operates with the same purpose as conventional banking except that it operates in accordance with the rules of Shari’ah, known as Fiqh al-Muamalat (Islamic rules on transactions).

The latest strategy to aggressively grow unsecured loans to the SME segment, underpinned by the hopes of earning mega bucks to make up for the falling margins is bold but could well be the cause for the next disaster.

Asia Development Bank(ADB)'s latest news shows that its Trade Facilitation Program ( TFP) will increase trade volume of USD 1.2 billion among some difficult member countries due to the cooperation with OFID. It will stick to the traditional LC or banks' guarantee as trade facilitation tools to assist SMEs in emerging countries . Trade Facilitation Program , a product using LC and guarantee to promoting trade among commercial banks, was initiated by European Bank of Reconstruction and Development (EBRD)whose mission is to assist its 29 member countries to quickly develop their economies in order to not falling back to communism after the collapse of Soviet Union in 1991.

With political turmoil and economic upheaval in many parts of the world, the need for closer interaction and trade between Muslim and non-Muslim countries has never been greater.

Asian retail banks face a serious problem: People lack confidence in them. Too often, potential customers remain unbanked or meet their financial needs elsewhere.

With political turmoil and economic upheaval in many parts of the world, the need for closer interaction and trade between Muslim and non-Muslim countries has never been greater.

The global financial and economic meltdown has created a new world with its own array of threats, opportunities and sustainability factors which call for fresh thinking to capitalize new horizons, damage control and preempt fallouts.

While the world was engrossed in watching the LIBOR scandal unfold recently and banks across the world were reviewing every index with palpitation, an important development came up in India.

I was at SIBOS, Osaka, Japan, last week, and it was a pleasure to meet several bankers across the world. Moreover, as the event was held in the Asia Pacific, there was a very good representation from the Asian Banking and Finance Community–a very good blend of banks, IT vendors, regulators, monetary agencies, Clearing and Settlement houses, depositories, and so on.

The US and European Private Equity (PE) industry has taken repeated hits after the escalation of the financial crisis in September 2008. LBO markets came to a halt through banks’ inability and unwillingness to lend.