BNY Mellon was recently named Best Transactional Bank for Financial Institutions in the Middle East by EMEA Finance magazine – an accolade that that has been published by the American Lebanese Chamber of Commerce. BNY Mellon was recognized for its commitment to providing exceptional client service, its strong banking relationships – on a non-compete basis – and its focus on enhancing the client experience.
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The trade finance gap is a serious issue that is impacting the health of global trade and business development in many countries across the world. In Asian Banking & Finance, BNY Mellon Treasury Services’s Joon Kim, Global Head of Trade Finance Product and Portfolio Management, and Arnon Goldstein, Regional Head of Relationship Management APAC, discuss the key findings of BNY Mellon’s recent global survey into the trade finance gap. The article examines solutions for addressing the gap, and the importance of taking action in order to ensure trade in Asia can reach its full potential.
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Speaking to Bloomberg, Stephanie Besse – Natixis’ Global Head of Debt Capital Markets for Corporates – mentions that European borrowers planning January debt sales may take the opportunity to sell new bonds as tensions simmer in the Middle East.
“If I was an issuer planning to come in the next two weeks, I’d be looking to use any window from now”, said Besse. “The situation is worrying and may lead to more volatility. Still, for now it probably isn’t severe enough to prompt corporate borrowers to bring debt-sale plans forward”, she concluded.
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Writing for CFO South Africa, Global Credit Data’s Executive Director, Richard Crecel and Membership and Methodology Executive, Daniela Thakkar, outline results from their latest IFRS 9 Benchmarking Report.
As banks’ first financial statements under the new IFRS 9 reporting standard are released, results from the study indicate their Expected Credit Loss (ECL) estimates under the new standard vary wildly – even when assessing identical portfolios of assets. The complex framework, they argue, will require further benchmarking on a larger scale, including developing a range of standard methodologies and reference points.
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While the uptake of sweeping initiatives, such as SCT Inst and SWIFT gpi tend to grab all the headlines, there remain a number of other pain points for banks and corporates that can be addressed only through close dialogue between both parties. Let’s take credit collection as an example. This is a key contributor to many businesses’ cash flows, yet the process itself can often be time-consuming and frustrating. This frustration was felt by FCA Bank – an equally held joint venture between Fiat Chrysler Automobiles Italy and Crédit Agricole Consumer Finance – as it sought a faster, more efficient and more transparent solution through UniCredit.
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Global Credit Data’s latest probability of default (PD) benchmarking report shows that bank default ratios for corporate debt have dropped from 1.12% to 0.73% since 2016. On the face of it, this is good news, but could it be masking a corporate debt bubble?
Data from the report, which is designed to help banks benchmark their Probability of Default (PD) estimates against industry peers – and analyses long-term internal observed default rates and internal rating migration matrices from a portfolio of 26 leading financial institutions over a period of 15 years – show that bank loans have been performing well in recent years, but the figures are also consistent with fears of a corporate debt bubble.
An influx of newly issued corporate debt (so new as to be unlikely to already be defaulted) can have the effect of driving default ratios down, while, in practice, if this debt is issued by lower-rated companies, the underlying risk of default may well be increasing.
Read the report here.
The news was covered in The Global Treasurer, TRF News, Business Money, Trade Finance Global, Treasury 360, CTMfile.
The payments sector has made huge strides in recent years. In Europe, the introduction of instant domestic payment services such as SCT Inst and TIPS has stoked demand for faster payments beyond Europe’s borders. While SWIFT gpi has moved us closer to meeting this demand, there is still work to be done – starting with the integration of gpi and the continent’s instant payments schemes, argues Cédric Derras, UniCredit’s Global Head of Cash Management.
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The flourishing data economy, the emergence of FinTech and BigTech firms in the traditional banking space and the growth of the crypto-assets market all promise a new era for the financial industry, bringing new competition, improved client service and innovative financial products. Regulations will play a key role in shaping the face of this newly emerging landscape, argues Deutsche Bank’s Polina Evstifeeva in an article for The International Banker.
The article can be read here
The switch to ISO 20022 lays the foundation for greater payment processing efficiency and interoperability, improved customer experience, streamlined compliance procedures, and the capability to deliver new services. The scope of this transition is enormous, so it will not happen overnight or be without its challenges.
Fortunately, these challenges are being met head on. Throughout 2019 several steps forward have been made, with the release of numerous usage guidelines as well as the development of new Swift tools to help facilitate the transition.
But with all this change, keeping abreast of the latest developments and understanding the key points for consideration has proved testing even for seasoned professionals. So, how can market participants ensure they are prepared for ISO 20022? Christian Westerhaus, head of cash products, cash management, corporate bank at Deutsche Bank, explores.
The article can be read here.