As China has moved to speed up the internationalisation of its domestic currency since the financial crisis, the UK has made no secret of its willingness to play a role in this process. But much work still needs to be done with regards to trade settlements between the two countries, as well as improving transport links and communications.
Now Kuwait has joined many other Gulf states in pushing through private financing across a range of sectors and overhauling its infrastructure, it boasts one of the Middle East's largest and most diverse public-private partnership programmes. But as the country's government opts for PPPs, will the banks follow?
By identifying potential weaknesses and fixing them – diversifying a previously oil-reliant economy and encouraging growth in the private sector – Saudi Arabia has managed to sustain a growing economy, even through times of economic and political turmoil.
Banks are looking for a larger slice of the highly liquid foreign exchange market, and in response FX trading providers are developing their technology apace. But with the huge technology requirements for FX houses and the changing regulatory landscape, the battle lines are being redrawn.
Home to an estimated 9% of the world’s total oil reserves, Kuwait posted its 12th consecutive budget surplus of $18.9bn in 2011. But while the country's coffers are flush with cash, continued political infighting has stymied development, leaving the economy overly reliant on the oil sector and the country's basic infrastructure in need of improvement.
Loans are up, deposits are growing and profits are healthy in Saudi Arabia's banks. But with growth opportunities in Islamic finance and a low proportion of home ownership in the country, there are still many more lucrative areas for these institutions to tap.
Kuwait's banks are struggling to recover from the significant losses made in 2008 and 2009, suffering with high levels of non-performing loans and a dearth of lending opportunities. The government's economic development plan was designed to both offer a lifeline to the banking sector and diversify the country's oil-reliant economy, but while banks are keen to get on board with the various projects, political indecision is slowing their progress.
In an attempt to tighten its regulatory framework and instil greater confidence in investors, Kuwait’s parliament has approved its first independent capital markets regulator for the Kuwait Stock Exchange. Only time will tell if the move can resuscitate the market.
High non-performing loan ratios and stringent, ever-changing government policies have put foreign-owned banks in Hungary under pressure. As established players change their footing, allocating a larger proportion of their funds abroad, a number of smaller local outfits are moving in to capitalise on the potential of niche markets.
After a harrowing 2011 for Europe's crisis-hit sovereign states – and the banks doing business within them – the European Central Bank's long-term refinancing operation has given the markets a much needed boost and offers hope for 2012. However, some still claim that it is little more than a sticking plaster for Europe's troubles.
Europe’s corporate bond market started 2012 at a ferocious pace as investors flocked to what they increasingly perceive as a safe haven. While issuance may slow later in the year, few believe the market is a bubble waiting to burst, and there is a widespread feeling that its heyday will last a good while yet.
Few could have predicted the start that debt capital markets have made to 2012, with the European Central Bank's long-term refinancing operation breathing new life into the sector, providing a bonanza for sovereigns, corporates and high yield alike. However, the continuing problems within the eurozone still cast a shadow over the markets.
With a miserable reporting session at the start of 2012, equity bankers are expected to bear the brunt of it with widespread bloodletting predicted in the business. However, some senior figures argue that consolidation in the equity sector is long overdue, with overcrowding pushing down margins to unsustainable levels.
As the eurozone crisis rattles equity capital markets, equity bankers and investors are being forced to anticipate the actions of politicians. But with a host of deals carried over from the fourth quarter of 2011, there may still be scope for an increase in activity in 2012.