Banking is still very much a human business. Customers need services to manage their lives, acquire the things they need and want, and secure their futures. Conveniences added over the years have disconnected beneficial personal relationships, so need to have new tools to humanize the banking relationship on the customer’s terms. It starts with integrated data across the entire organization data that can give a true 360-degree view of the customer. Understanding customers’ demographic and…
Interest rates are rising and continued economic uncertainty, absolute time to be more structured and systematic liquidity precision. As inflation pressures continuing, central banks across the globe are heightening up interest rates and cramping monetary policies, forcing banks to contend with scarcer and more expensive liquidity this year and onward. Financials of different banks indicate, these forces have already reduced their liquidity coverage ratios (LCRs) and net stable funding ratios (NSFRs). Further deterioration will increase…
Whether it was wrongly predicted the demise of globalization for what seems like years. Now, given the war in Ukraine and other disruptions, many are once again sounding its death knell. Is it really in retreat. The streams of goods, the real touchable substance, have leveled off after nearly twenty years and above of growing at twice the rate of Gross Domestic Products (GDP). But the flows of goods kept pace with GDP and even…
OverviewDomestic capital markets have an important role to play in mobilizing private capital to finance domestic development. By giving companies the ability to borrow domestically in local currencies, domestic capital markets can also reduce currency mismatches for borrowers, thus reducing systemic risks. At the same time, government bond markets create tools to manage macroeconomic and fiscal risk and provide important pricing benchmarks. However, the capital markets can increase risks in the real economy, for example,…
OverviewDomestic capital markets have an important role to play in mobilizing private capital to finance domestic development. By giving companies the ability to borrow domestically in local currencies, domestic capital markets can also reduce currency mismatches for borrowers, thus reducing systemic risks. At the same time, government bond markets create tools to manage macroeconomic and fiscal risk and provide important pricing benchmarks. However, the capital markets can increase risks in the real economy, for example,…
During the Global Financial Crisis, banks suffered losses on a scale not witnessed since the Great Depression, partly due to two major structural developments in the banking industry; deregulation combined with financial innovation. In the aftermath of the financial crisis, the regulatory response concentrated on the Basel III recommendations, raising core capital requirements for banking institutions; affecting their business model and funding patterns.Consequently, these changes have had significant implications on how banks grant loans, how…
One chaotic, disappointing year has ended. Another one is likely in store. In October, the IMF released its annual economic outlook projecting weak growth across the world in 2023. It placed particular emphasis on three issues: high inflation and central bank tightening, Russia’s invasion of Ukraine, and the continued effects of Covid especially in China and expand to other territories as well. What to expect for the economy in 2023, and how things have evolved…