Business strategy and risk culture It is understandable – but mistaken – to conflate strategy implementation with the achievement of economic targets. For a bank, financial objectives will normally include growth in income, balances or market share and this will normally be an outcome of how successfully strategy is executed. But for banks
Markets attempt to look through Iran conflict – For now Market sentiment has oscillated sharply in response to developments in the Arabian Gulf, but recent price action suggests investors are increasingly willing to look through the immediate shock. Having been down roughly 9% earlier in the year, the S&P 500 has recovered most
Investors exit private credit After more than a decade of uninterrupted growth, the private credit market is facing its first major contraction. Recent weeks have seen a rush to exit the asset class, prompting several fund managers to "gate" redemptions – a move only likely to further erode investor confidence. The primary catalyst for
AI adoption continues despite investor skepticism The AI-powered stock market boom in the US has lost momentum as investor concerns grow over whether massive capital expenditure will translate into sustainable profits and justify sky-high valuations. But the rapid rollout of AI across the real economy – most notably in banking – tells a very
US deregulation poses dilemma elsewhere Since returning to office, US President Donald Trump and his administration have embarked on a campaign of wholesale deregulation in areas related to banking and finance. These measures have far-reaching and profound implications across the sector and for jurisdictions elsewhere. The US deregulation drive has industry-wide and global
“Uninsurable world” poses systemic risk As the United States rolls back the climate risk mitigation measures of the previous administration, elsewhere the implications of rising temperatures are being keenly studied. This is particularly the case in the insurance industry which is effectively pronouncing more and more assets uninsurable with far-reaching consequences. Disruption to the
UK Supreme Court ruling highlights conduct risk A recent UK Supreme Court decision in relation to car finance may mean that the banking industry has escaped its worst fears in that specific case, but the issue has served to bring the issue of bank conduct risk out into the open once more. UK
GENIUS Act paves way to widespread tokenization in US capital markets The recent high-profile launch of tokenized money market funds (MMFs) in the US, following the passage of landmark legislation, marks a significant step in bringing blockchain-based finance into the regulatory mainstream, shifting attention away from crypto speculation and toward more institutional, low-risk
Tariffs may not be enough to curb US trade deficit While the US is turning to tariffs in an attempt to rebalance its widening trade deficit, deeper structural forces are also in play – most notably, the world’s enduring trust in the US as a safe harbor for capital. In April, President Donald
Open finance runs into limitations over “super-apps” The move by BNPL provider Klarna into mobile phone services signals an ambition to build a “super app.” But while open finance holds promise, replicating Chinese platforms such as WeChat and Alipay may be a step too far. Holding a banking license was long regarded as
