The past 12 months have been turbulent for the banking sector. Despite the consequences of the credit crunch on structured credit models and transaction flows, both international and local banks have once again brought an impressive number of deals to the attention of The Banker’s judges. The global, regional and country winners have been picked from the 447 transactions submitted from 93 countries around the world.
Moroccan banks have achieved strong growth in their loan books in recent years. Bank Al-Maghrib, the central bank, reports that total credit in the banking sector grew 17.7% to Dh327,357m ($38,708m) in 2006, the last complete year for which figures are available, following on 2005’s 12.5% growth.
Hedge fund manager John Paulson has come out on top in the list of the 100 top-earning fund managers,compiled by Trader Monthly magazine, with a record-breaking $3bn in earnings last year, according to reports. Big bank CEOs’ loss was hedge fund managers’ gain in the US subprime crisis.
In times of financial strife, financial institutions look towards business areas that show sturdy growth despite the prevailing conditions. Transaction banking and, in particular, cash management is one such area. Werner Steinmueller, head of global transaction banking at Deutsche Bank, discusses the current trends in the sector.
Tough times for bankers. UBS chief executive Marcel Rohner is under pressure to split the investment banking and wealth management arms of Europe’s second largest bank as this is touted as the best solution to the $18bn writedown that it has taken on mortgage securities.
The board of directors of Bear Stearns, one of the US’s largest investment banks, agreed to be bought by rival JPMorgan for $236m in shares in a deal that puts an end to Bear’s 85 years of independence and highlights the risks faced by banks during the credit crisis.