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Articles on Banking

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RBS: Not as valuable as it used to be. David Cheskin/PA

RBS sale: bad for taxpayers, bad for banking

The UK could be about to make a multi-billion pound mistake. Plans to sell-off the 82% share of the Royal Bank of Scotland (RBS) and the 39% share of Lloyds owned by the taxpayer are gaining favour in…
The City has been plagued by financial disasters. Will the replacement of the Financial Services Authority with two new banking regulatory bodies be enough to stop the rot? AAP Pictures

After a long line of financial disasters, UK banks on regulatory change

If the UK Financial Services Authority (FSA) had been a dog, it would have been about 86 years old when it was put down on April Fool’s Day this year. Uncharitably, some say that the FSA, the lead regulator…
The scale of China’s off-balance sheet lending may seem extensive, but it’s not the scary beast that many commentators have made it out to be. Philip Jagenstedt/Flickr

Light among the shadows: the upsides to a financial crisis in China

In recent months, talk of an emerging crisis in China’s financial sector has been getting louder. A few weeks ago such chatter reached a crescendo, at least in terms of a narrative, when two Nomura economists…
Talk of the Cyprus bailout sparked a surge in the value of virtual cryptocurrency Bitcoin. zcopley

Is the Cyprus crisis a boon for Bitcoin?

For most of us, banks represent a trusted and safe harbour for our money. Investing in fixed term deposits for example, is widely seen as a low-risk strategy. The global financial crisis changed that view…
Cyprus is making a last-ditch bid to negotiate a bailout deal from the IMF, the EU and the ECB. AAP

As deadline looms, Cyprus’ fate lies in the hands of the troika

Last week, the Parliament of Cyprus rejected a bill that would impose a levy of 9.9% on bank deposits over the insurance threshold of €100,000 and a levy of 6.75% on deposits below the insurance ceiling…
As the ABC’s Four Corners explored, small investors are being caught in an unregulated investment market, often with devastating results. Has the corporate regulator dropped the ball - or is it juggling too many? ABC Four Corners

As casualties pile up, has our investment sector become too big to regulate properly?

Stephen Long’s story last night on the ABC’s Four Corners beautifully illustrated the human cost of financial misconduct, as retirees and widows described the pain of having lost their super funds and…
Another day, another banking scandal: the UK Parliamentary Commission on Banking Standards has exposed the follies of the City’s badly behaved bankers. AAP

London’s bad bankers thrown into the lion’s den

Though it rarely rates a mention in the Australian financial press, there is a spectacle in London at the moment that rivals even the most ferocious games at the Roman Colosseum. Almost every day, a bunch…
In a blistering speech to the Banking Committee, Senator Elizabeth Warren exposed profound weaknesses in the US’ current system of financial regulation. Flickr\mdfriendofhillary

Bankers left reeling as Senator Elizabeth Warren grills financial regulators

It was an artful if devastating performance. In just seven minutes, Senator Elizabeth Warren from Massachusetts signaled the arrival of what appears destined to be a powerful force on Capitol Hill. At…
More of the same: the UK government’s banking reform bill is merely another capitulation to the banking lobby. AAP

UK banking reform bill won’t curb reckless risk-taking

Some four and-a-half years after the banking crisis that has resulted in massive public debt and a deep austerity program, the UK government has finally unveiled its Financial Services (Banking Reform…
Earlier this week, Stefan Ingves (left), chairman of the Basel Committee on Banking Supervision’s governing body, and Mervyn King announced amendments to Basel III’s liquidity rules for banks. AAP

Is the Basel process broken? You can bank on it

This year, the Basel process of banking regulation is 25 years old. In 1988, the first set of global banking regulations, known as Basel I, was adopted by the world’s senior banking regulator, the Basel…
As part of its settlement with the Department of Justice, an external monitor will be appointed to oversee HSBC’s corporate compliance processes.

Banks on alert as regulators step up pressure on HSBC

This week, two different approaches to embedding restraint began to take shape as London-headquartered banks reflected on the exceptional power of the United States Department of Justice to shift cultural…
As regulators finally move on the Libor scandal, are they asking themselves the right questions?

In the Libor scandal, where were the regulators?

Welcome to the third and final part of Back to the Future. AS HSBC is fined US$1.9 billion for “egregious” money laundering and the first arrests are made in the Libor scandal, the need for the public…
Institutionalising restraint is business practice will prove challenging for HSBC and regulators alike.

Banks behaving badly: HSBC settles in money laundering probe

The $1.92 billion deferred prosecution entered into by HSBC with US regulators is one of the most significant financial penalties imposed on a global bank. On Tuesday in a Federal Court in Brooklyn, HSBC…
Rampant litigation in the financial sector will only create more risk for Australia’s banks. AAP

Too many lawsuits might break the banking sector

This week, the National Australia Bank published its 2012 annual report, confirming that its net profit for the year had fallen by about 21%, mainly from higher bad and doubtful debt charges. Buried deep…
Will retail banks go the same way as Borders or Blockbuster Video? Image from www.shutterstock.com

The fate of retail banks: embrace technology or lose market share

How are retail banks — the incumbents of banking — likely to fare in the era of mobile banking? This is an increasingly crucial issue for banks. Mobile banking is a major technological development, and…
Is there such thing as an ethical finance system? Proponents of Islamic finance believe so. Image from www.shutterstock.com

Can Islamic finance provide salvation for the banking sector?

Islamic finance has grown and expanded rapidly in recent years. It was recently announced that, following in the footsteps of some of its European neighbours, Germany will soon have its first Islamic bank…
Had it come out five years ago, APRA’s consultation paper could have left taxpayers footing the bill for BankWest’s collapse in 2008. AAP

Protecting taxpayers from systemic risk should be at the heart of APRA changes

At first glance, a consultation paper released by Treasury last week aimed at strengthening the crisis management powers of the Australian Prudential Regulation Authority, could pass for a routine tidy-up…
Is a full enquiry into Australia’s banking industry overdue? source: shutterstock. Image sourced from shutterstock.com

Debunking the myth of our ‘well-regulated’ banks

A Senate Economics Committee has been reflecting on life after the global financial crisis for Australian banks. The general consensus has been to date that Australian banks escaped the worst of the fall-out…
Taking care of business: given the glacial pace of financial reforms since the GFC, it is not unreasonable to expect another crisis of the same magnitude. _Davo_

Crisis? What crisis? Five years on, we’ve surrendered to the global financial sector

It has been five years since the sub-prime mortgage crisis emerged in the US. This was followed by financial institutions suffering liquidity shortfalls in both US and Europe, and their eventual collapse…

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