Originally Published on Digitalist Magazine With the advent of robo-advisors, artificial intelligence (AI), and virtual assistants, the next wave of the financial technology revolution could arrive sooner than anticipated. A report by EY, “Unleashing the Potential […]
Big Data tools not only simplify lengthy analytical procedures in any industry, but they also provide a competitive advantage to banks. With new regulations, banks are looking at ways to make compliance procedures more effective […]
Banking is getting branchless, contemporary and digital at a very fast pace. As banks compete to gain competitive advantage, the need for managing big data and analytics becomes more relevant. Big Data has transformed the […]
Investors will be looking at a widely expected interest rate hike Wednesday as a signal of the Federal Reserve’s growing confidence in a healthier U.S. economy. But they should also see it as a signal […]
Banks have always remained too big to fail but their systemic risk became the topic of debates after the 2008 financial crisis. Living wills are a part of the post-2008 reforms to ensure that the risk does not spread to other sections of the financial system.
Volcker Rule is a temporary solution to a permanent problem of ‘too big to fail’. If Volcker Rule really aims to address the issues of 2008 financial crisis, it should eliminate the issue of ‘too big to fail’ because as long as large firms exist, they will continue to attract federal support during any future crisis, despite all the adherence to the strict rules in the Dodd-Frank rulebook.
With many complexities and delays, the promise made by Dodd-Frank is yet to be delivered. The above-mentioned rules are only three rules of the 400 ones that make up the Dodd-Frank Act. Here are the missing links of the Dodd-Frank Law.
Libor manipulation can bankrupt sixteen big banks and shake investors’ confidence. Libor rigging involves billions of dollars as profits. The big banks include Bank of America, JP Morgan Chase and Citigroup. While the first rigging […]
Switzerland remains one of the most stable economies across the world and has not been in conflict with another country since 1505. With strong political stability and high per capita income across the world, it has also managed to keep its unemployment rate low. With Basel having headquarters of Bank of International Settlements (facilitates cooperation among the world’s central banks), Switzerland is considered one of the biggest tax havens in the world. The offshore accounts with Swiss banks have partial or full exemptions depending on the private bank. The country implements an extremely high level of secrecy when it comes to disclosure of financial assets of its clients.
Big banks have been subject to a lot of scrutiny after the global financial meltdown in 2008. During the crisis, banks remained huge and posed systemic risks that were large enough to take down the entire financial system and eventually the economy. The question that is very important is whether pleading guilty to manipulation solves the problem that big banks face. The bitter truth remains that the big bank theory leads to bigger scams and if found guilty, leads to bigger fines but nothing really changes. The increased evidence of unethical behavior in the banking system is just a small chapter in the history of many banking scandals.
The whole purpose of BRICS New Development Bank is to be self sufficient and rely less on western economies. The world’s reserves has shrunk from 90% (2004) of dollar denominated securities to 60% in 2014. But, the growing tension individually in the member countries could easily defeat the purpose for which it was originally formed. Some debate that this small initiative (formation of BRICS) could be a big challenge for the advanced economies.
The creation of AIIB, China has opened its closed doors to many countries. In committing to contribute up to 50% of the AIIB capital, it will be taking the lead in assisting the development of other Asian countries. There will be a lot of rising challenges in the development of the bank but this could be a great opportunity for China to prove itself as a global leader.
Banking sector has witnessed many technological changes in recent years that offer more personalized services. The shift towards getting more digital just got more exciting with the introduction of many user-friendly technologies. As banks try to make banking quicker and secure, the option for digital innovations keeps getting more and more competitive. The first quarter of 2015 introduced some very interesting banking innovations that could revolutionize the banking experience for customers.