International banking groups have traditionally been the main players in Central America but as markets begin to grow, in nearby Colombia in particular, local lenders are increasing their profits, acquiring foreign-owned subsidiaries and establishing a greater presence in the market.
In response to the suggestion – put forward by bankers and central bankers in the UK – that a temporary cut in capital adequacy requirements would stimulate new lending and economic growth, The Banker has simulated how a 1% lower Basel requirement might affect various major world economies.
Out of the top five international financial centres with the largest aggregate volume of bank assets, a mix of European, Asian and North American centres occupy the top places in both the ranking that considers bank holdings incorporated in a certain jurisdiction, and the one of foreign-owned subsidiaries operating in the centre.
As a large number of banks across the globe see the value of their brand slip for a second consecutive year, many financial institutions are seeing both positive and negative results of being associated with their country of origin, something that has worked out particularly well for Canadian banks.
Foreign direct investment into the eurozone’s financial centres has been in decline since the onset of the region’s crisis. However, thanks to some encouraging government policies, Dublin has defied the trend, attracting its highest ever level of FDI in 2011.
Foreign direct investment into the eurozone's financial centres has been in decline since the onset of the region's crisis. However, thanks to some encouraging government policies, Dublin has defied the trend, attracting its highest ever level of FDI in 2011.
Japan's banks recorded unremarkable increases in profitability and returns over the past year, yet the country's big players have maintained their prominence within the global rankings, suggesting that their disappointing performance is part of a wider global trend. But with the data from the months following the disasters of March 2011 yet to be revealed, the performance of Japan's banks could yet take a further hit.