The Islamic finance industry has undergone rapid growth in recent years, but in representing just 1.5% of global banking assets, it remains a hugely underpenetrated market across many asset classes and geographies. This has led the heavyweight global Islamic players to redefine their strategies to capitalise on these opportunities.
Hong Kong has been the world's biggest initial public offering market for the past two years. Is this a sign of a structural shift in the equity markets, in which companies' capital-raising strategy must include a Hong Kong/China element? And just how much are world leaders London and New York losing out to their Asian rivals?
Competition to be the Middle East’s leading international financial centre is rife. However, recent domestic problems in Dubai and Manama have weakened their respective positions, and have created an opening for Qatari capital Doha to emerge as a stronger challenger.
Bankers have been vocal in their opposition to the recommendations from the Independent Commission on Banking's final report, with some threatening to leave the country if regulation becomes too severe. But in economies where the financial sector has the potential to bankrupt the entire country, regulators are right to protect the economy.
As the US and the EU focus on regulating different areas of the financial services industry, there is a temptation among financial institutions to relocate certain operations in order to evade strict new rules coming into play in certain jurisdictions. So is over-regulation posing a threat to the traditionally dominant international financial centres?
Despite all the talk of emerging economies overtaking the traditional international financial centre powerhouses of New York and London, the big two remain in the top positions in The Banker's ranking. However, the challengers to this crown are still making ground.
With Europe and North America paralysed by sovereign debt crises, the majority of respondents to The Banker magazine’s global asset management survey are focused on Asia, with more than 50% expecting to increase investment in the region. Investment funds are expanding their operations in centres such as Hong Kong and Singapore, as the eastwards transfer of economic power gathers pace.
Global currency markets have become increasingly volatile as European policy-makers struggle to resolve the sovereign debt crisis and emerging economies try to limit currency rises at the same time as taming inflation. Traditional safe haven countries have been prompted to take historic action in a bid to stem currency appreciation and support exports. But are there any safe havens any more?
The traditionally dominant international financial centres are struggling to cope with a glut of post-crisis regulation, giving smaller, newer jurisdictions an opportunity to steal a march on them. The Banker's survey shows that the traditional powerhouses still hold the top spots, but their grip is not as firm as it once was.
New regulations, specifically the push towards central counterparty clearing, are having a huge impact on banks' over-the-counter foreign exchange operations. As the banking sector undergoes significant changes, what will this mean for banks' organisational structures and the foreign exchange market?
Commodity currencies have posted record gains in the past two years, fuelled by spiralling demand for food and materials. But some of these countries are now struggling to offset runaway inflation, and the rate of inflows is such that central banks are becoming increasingly helpless to reverse the pressure on their currency.