Warfare has existed throughout human history, but it hasn’t always involved swords and spears. If humans are doomed to fight each other, is economic warfare more “humane” to solve disagreements than military confrontations? Possibly, but both lines of offense can have devastating consequences for victims and should be carefully monitored.
The COVID-19 pandemic has driven a step-change across the European payments industry. We’ve seen an acceleration of cashless payments across markets where cash has historically been dominant. And an exponential increase in e-commerce activity as consumers were forced to stay at home during national lockdowns
Relationship lending involves regular contacts between a bank and a customer over time, so the lender can understand the customer well enough to provide a tailored credit solution with little risk. During times of crisis, relationship lending is mutually beneficial and may be increasingly employed as the pandemic’s full impact transpires.
Data is a valuable commodity in today’s economy, with most industries depending on it. Commodities are traded, but sharing data between relevant parties is not easy because of numerous safeguards. Only a coordinated effort from private and public-sector stakeholders will ensure data flows to where it is needed securely but efficiently.
South Africa is known as the Rainbow Nation due to its citizens’ willingness to welcome anyone to find their next home there. Foreign investment in the premium property market has stalled with the pandemic, political uncertainties and economic struggles. Even so, the country’s natural beauty and bounteous assets beckon to property buyers.
Trade relationships expose firms to the economic upheavals of their international partners, but natural hedging is one method to minimize the risks. Matching currency footprints, financial hedging, operations hedging are some of the ways firms can build a hedge to lessen exposure and protect themselves from importing shocks from abroad.
Monopolies pose dangers, and the one held by the world’s three top credit-rating agencies (Standard & Poor’s, Moody’s, Fitch) is no exception. These heavyweights are influential enough to cause financial crises—and may have in the past, due to problems such as conflicts of interest. The only solution is a radical reform of this oligopoly.
The enforcement of environmental-crime legislation is evolving in the UK—and the pace is set to quicken, with inevitable implications for financial firms and investors. Increasing enforcement sophistication and AML risks, focus on supply-chain due diligence, and ESG and regulation are three ways in which risk is changing for the industry.
Nonperforming assets weigh down any bank but are particularly burdensome for those in emerging market economies. South Korea, in response to the Asian Financial Crisis of 1997, took steps that provide a blueprint for banks facing different circumstances but similar challenges today.
Crises inspire metamorphic change, and that’s happening in banking as we trudge through a pandemic. Can banks do more than boost their digital transformations—and bottom lines? Can they be the foundation of building back better? It starts in the community, providing services to everyone, without regard to race, gender, economic status.