Commentary

What you need to know about business foreign exchange

Banks across Asia are gearing up to fight for regional dominance of one of the most important and quickly growing products - Business Foreign Exchange. Spot FX, Forward FX and FX Options are the most ‘banked away’ products by customers seeking value for money and personalised customer service.

What you need to know about business foreign exchange

Banks across Asia are gearing up to fight for regional dominance of one of the most important and quickly growing products - Business Foreign Exchange. Spot FX, Forward FX and FX Options are the most ‘banked away’ products by customers seeking value for money and personalised customer service.

The real special thing about banks

Every once in a while it’s worth reminding ourselves what banks are here for. Worth it because since the crash there has been so much nonsense written by every type of commentator on just this subject.

Why Asia should zero in on demand management

Asia is a region of great promise; predicted to account for over half of global output by the middle of the century. Yet as volatility remains in global supply chains, competition intensifies and consumersare ever demanding, best practice demand management is an imperative.

Can your bank profit from the international trade boom in Asia?

Trade flows are shifting east. International trade to and from Asia has shown spectacular growth in recent years, a trend that is set to continue for the next decade.

How to capture demand in rapid-growth markets

As banks seek growth, rapid-growth markets (RGMs) are a natural draw. In many RGMs, retail banks are growing as increasing affluence drives demand for more financial products and services. Corporate and investment banks are expanding, as government programs that are aimed at improving infrastructure and public services, and attracting foreign investment, create the conditions for business growth.

What you don't know about Indian Rupee volatility

The purpose of the article is to draw attention on the recent volatility in Indian Rupee, various hedging options and effective hedging strategies.

Why bridging a bank’s systems is crucial to increasing cross-business trading efficiencies

In ever-changing market conditions, the sell side is under significant pressure to find revenue growth and cost savings in a time of great uncertainty for existing business models.

Hottest jobs in the Asian banking and finance sector

Staff movement is creating vacancy activity throughout the Asian finance and banking sector as people decide to change employers – giving us evidence that candidates are gaining confidence in the recovery of the banking industry as they explore their options and look for opportunities to develop their careers. Christine Wright, Operations Director for Hays in Asia, discusses the trends and current opportunities across the region from the latest Hays Quarterly Hotspots list.

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.