First Global Bank has seen rapid growth since it was launched by GraceKennedy 10 years ago. It has earned a reputation for providing excellent customer relationship management for SMEs, and has invested in a strong security infrastructure to pioneer the best internet banking solution in the country. Maureen Hayden-Cater and Courtney Campbell discuss First Global Bank’s history, and how the GraceKennedy mantra – “We Care” – informs its work with communities.
Year: 2012
Fernando Massú on commodities | CorpBanca | Video
As the world’s top supplier of metal, Chile has been riding the commodities boom to become one of the healthiest economies in South America. CorpBanca is an outstanding partner to companies establishing themselves in the country, or – as it continues to grow across the continent – those already in Chile seeking to expand geographically. Fernando Massú discusses CorpBanca’s sound risk management and the synergies it enjoys as part of the large Saieh Group.
Wild East comes to London (again)
If that means airing their dirty laundry in public, then so be it.
The latest bun fight – set to play out this week at the Royal Courts of Justice – pits tycoon, Michael Cherney against Oleg Deripaska, CEO and largest shareholder of RUSAL, the world’s top aluminium producer.
It comes as UK-exiled media baron and one time Vladimir Putin supporter, Boris Berezovsky and Chelsea Football Club owner, Roman Abramovich, await judgement on their recent $7.75bn clash over Berezovsky’s claim Abramovich had ‘intimidated’ him into selling shares in Russian oil company Sibneft for a fraction of their true worth.
At issue for Cherney and Derispaska though is a $1.2bn stake in RUSAL – Cherney claiming he and Deripaska were business partners and signed a document in London’s Lanesborough Hotel in 2001 giving Cherney 13.2 percent in the now publicly-listed RUSAL. Deripaska denies any such agreement.
For Cherney, the diminishing size of his stake reflects a more than halving of RUSAL’s share price since its April 2011 high, following a slump in aluminium prices and debt issues.
Cherney, who like Deripaska amassed much of his fortune from aluminium, is expected to give evidence via videolink from Israel, where he now lives, because of an outstanding arrest warrant in Spain where he’s wanted for questioning as part of a money laundering investigation. Coming to London would have left him open to extradition.
Deripaska for his part will claim he was paying Cherney off and was the victim of a protection racket agreement, known locally in Russia as a krysha (translated as roof) – Cherney himself allegedly connected to Russian criminal syndicates.
What isn’t in dispute is that a $250m sum changed hands in the Lanesborough that day.
The case is expected to be adjourned – once opening arguments have been submitted – until September, when witnesses will be called.
Deripaska is well known in the West, hitting the headlines back in October 2008 when George Osborne, now the UK’s Finance Minster, was forced to confirm his political party had rejected a donation from a company owned by Deripaska.
This revelation came after earlier press reports that a donation had been sought and that Osborne had met previously met Deripaska five times.
Deripaska had indicated through his friend, Nat Rothschild (of banking family fame), that he could be interested in making a donation.
If the current case, originally filed in 2006, marks one of the biggest actions to be heard before a London court in recent years, it also offers, yet again, an insight into the chaotic, often lawless privatisation environment of the early 1990’s, following the collapse of the Soviet Union.
With an estimated 60 percent of disputes in London’s chancery and commercial courts initiated by East Europeans, including Russians, the authorities in Moscow are more than interested observers.
Earlier this year, Anton Ivanov, head of Russia’s Supreme Arbitrazh (Economic) Court said the practice of Russian businessmen bringing disputes before mainly London courts meant special legislation was needed to protect Russia from ‘encroachments upon its sovereignty.’
Premier Dmitry Medvedev concurred, describing Ivanov’s plan as a ‘civilised means of resolving issues’. Which is a more polite way of saying that the assets of those oligarchs still supportive of the Kremlin need to be protected at all costs. That’s easier said than done when many of the assets are held outside Russia and beyond Moscow’s jurisdiction.
Hugo Aramburu banking stress tests | Banca March
According to the European banking stress tests, Banca March has the highest solvency rating in Europe, at 22 percent. Hugo Aramburu discusses how the European Banking Authority’s analysis has been a powerful marketing tool for the bank, the hope of the Spanish financial industries as the country comes out of the recession, and the three pillars of support Banca March offers to family businesses and business managers.
David Suarez on pensions in Mexico | Banorte | Video
Following two mergers in the last two years, Banorte has significantly expanded and transformed its business, to become a leader in many segments of the Mexican financial industry. Banorte IXE now offers a highly competitive premium banking platform, and is considered one of the most important banks and best places to work in Mexico; while Afore XXI Banorte is the country’s second-largest pension fund manager. David Suarez discusses the larger group’s financials and his growth strategy for the next two years.
Pedro Duarte on banking in Portugal | Banco Carregosa
Banco Carregosa is the oldest financial institution in the Iberian Pensinula, dating back to 1833. In that time it has evolved from a foreign exchange trading house, to a full service financial brokerage company, and today focuses exclusively on private banking. Pedro Duarte discusses the bank’s strong sense of heritage, the challenges faced by the Portuguese economy, and why having a small and stable group of shareholders helps the company maintain independence.
Aravinda Perera on Sri Lanka | Sampath Bank | Video
Sampath Bank is a perfect case study of the economic boom sweeping Sri Lanka since the end of the civil war. The bank’s profits reached LKR 3.8bn in 2011, up from LKR 1bn just five years previously, after a successful programme of rapid branch expansion and aggressive deposit-taking and lending. Aravinda Perera discusses the reasons behind the post-war boom, the positive impact of Sri Lanka’s recent financial regulations, and plans to further diversify Sampath Bank Group’s interests.
Datin Maznah Mahbob on fund management | AmBank
AmInvestment Bank is a global asset management house, delivering conventional and Islamic funds. Since its inception 30 years ago the Funds Management Division has grown its funds from $100m to $10bn, and today the company dominates in the fixed income segment. Datin Maznah Mahbob explains how the company’s expertise was honed by the Asian financial crisis, its obsession with risk management, and moving into global sukuk.
Banking Awards 2012
Best Private Banks
Best Private Bank, Argentina
Banco Piano
Best Private Bank, Austria
Erste Private Banking
Best Private Bank, Bahrain
ABC
Best Private Bank, Belgium
Petercam
Best Private Bank, Bosnia Herzegovina
Nova Banka
Best Private Bank, Brazil
Banco Itaú
Best Private Bank, Canada
BMO Harris Private Banking
Best Private Bank, Channel Islands
RBC Wealth Management
Best Private Bank, Chile
BCI
Best Private Bank, China
HSBC China
Best Private Bank, Costa Rica
Corporacion BCT
Best Private Bank, Denmark, Norway & Sweden
SEB Private Banking
Best Private Bank, Dominican Republic
Banco Caribe
Best Private Bank, Ecuador
Banco Capital
Best Private Bank, El Salvador
Banco Citibank de El Salvador
Best Private Bank, France
Banque BNP Paribas
Best Private Bank, Germany
Deutsche Bank Private Wealth Management
Best Private Bank, Greece
Eurobank EFG
Best Private Bank, Honduras
Banco De Occidente
Best Private Bank, Hong Kong
UBS
Best Private Bank, India
Kotak Wealth Management
Best Private Bank, Indonesia
DBS Private Bank
Best Private Bank, Israel
Mizrahi Tefahot
Best Private Bank, Italy
Banca Monte Dei Paschi Siena
Best Private Bank, Jordan
Jordan Kuwait Bank
Best Private Bank, Kazakhstan
Halyk Bank
Best Private Bank, Kuwait
Burgan Bank
Best Private Bank, Lebanon
MEAB Bank
Best Private Bank, Liechtenstein
LGT Bank
Best Private Bank, Luxembourg
Banque de Luxembourg
Best Private Bank, Macau
BNU
Best Private Bank, Malaysia
CIMB Bank
Best Private Bank, Malta
Mediterranean Bank
Best Private Bank, Mexico
Banca Mifel
Best Private Bank, Mongolia
Trade And Development Bank of Mongolia
Best Private Bank, Morocco
Attijariwafa Bank
Best Private Bank, Netherlands
ABN AMRO MeesPierson
Best Private Bank, Nigeria
First Bank Of Nigeria
Best Private Bank, Oman
Oman International Bank
Best Private Bank, Panama
Global Bank
Best Private Bank, Poland
Alior Bank
Best Private Bank, Portugal
Banco Carregosa
Best Private Bank, Qatar
Doha Bank
Best Private Bank, Russia
Promsvyazbank
Best Private Bank, Saudi Arabia
SABB
Best Private Bank, Singapore
DBS Bank
Best Private Bank, Slovakia
UniCredit Bank Slovakia
Best Private Bank, Slovenia
Nova Banka
Best Private Bank, South Africa
FNB Wealth
Best Private Bank, South Korea
Woori Bank
Best Private Bank, Spain
BANCA MARCH
Best Private Bank, Sri Lanka
Nations Trust Bank
Best Private Bank, Switzerland
Bank Vontobel
Best Private Bank, Taiwan
CTCB
Best Private Bank, Thailand
Kasikornbank
Best Private Bank, Ukraine
ComInvest Bank
Best Private Bank, UK
Schroders
Best Private Bank, US
Brown Brothers Harriman
Best Private Bank, UAE
Falcon Private Bank
Best Investment Banks
Best Investment Bank, Angola
ATLANTICO
Best Investment Bank, Argentina
HSBC Bank Argentina
Best Investment Bank, Austria
Erste Group
Best Investment Bank, Bahrain
Global Banking Corporation (GBCORP)
Best Investment Bank, Belgium
KBC Bank
Best Investment Bank, Botswana
Stanbic Bank Botswana
Best Investment Bank, Brazil
BTG Pactual
Best Investment Bank, Canada
BMO Capital Markets
Best Investment Bank, Channel Islands
Citi
Best Investment Bank, Chile
Celfin Capital
Best Investment Bank, China
Renaissance Capital
Best Investment Bank, Colombia
Correval S.A.
Best Investment Bank, El Salvador
Scotiabank
Best Investment Bank, France
Societe Generale
Best Investment Bank, Germany
Deutsche Bank
Best Investment Bank, Ghana
Stanbic Bank Ghana
Best Investment Bank, Hong Kong
Bank Of China International
Best Investment Bank, India
Ambit Holdings
Best Investment Bank, Israel
Poalim Capital Markets
Best Investment Bank, Indonesia
Danareksa Investment Bank
Best Investment Bank, Italy
Banca Akros
Best Investment Bank, Jordan
Investbank
Best Investment Bank, Kazakhstan
Ansher Capital
Best Investment Bank, Kenya
CfCStanbic Bank
Best Investment Bank, Kuwait
Bayt Al Mal Investment
Best Investment Bank, Lebanon
Fransa Invest Bank | Watch the award presentation
Best Investment Bank, Luxembourg
BGL BNP Paribas
Best Investment Bank, Malaysia
Maybank
Best Investment Bank, Malta
Mediterranean Bank
Best Investment Bank, Mexico
Banco Interacciones
Best Investment Bank, Mongolia
Eurasia Capital
Best Investment Bank, Morocco
Attijariwafa Bank
Best Investment Bank, Mozambique
Standard Bank Mozambique
Best Investment Bank, Namibia
RMB Namibia
Best Investment Bank, Netherlands
ING
Best Investment Bank, Nigeria
First Bank Of Nigeria
Best Investment Bank, Oman
Fincorp
Best Investment Bank, Pakistan
Dubai Islamic Bank Pakistan
Best Investment Bank, Panama
Towerbank
Best Investment Bank, Portugal
CaixaBI
Best Investment Bank, Qatar
Amwal
Best Investment Bank, Saudi Arabia
Aljazira Capital
Best Investment Bank, Singapore
Standard Chartered Bank Singapore
Best Investment Bank, South Africa
Standard Bank South Africa
Best Investment Bank, South Korea
Mirae Asset Securities
Best Investment Bank, Switzerland
Credit Suisse
Best Investment Bank, Taiwan
Fubon Financial
Best Investment Bank, Thailand
Bualuang Securities
Best Investment Bank, Uzbekistan
Ansher Capital
Best Investment Bank, UAE
First Capital of Switzerland Investment Bank
Best Investment Bank, UK
Barclays Capital
Best Investment Bank, Ukraine
PromInvest Bank
Best Investment Bank, US
Merrill Lynch
Best Commercial Banks
Best Commercial Bank, Albania
Credit Bank of Albania
Best Commercial Bank, Argentina
BBVA Francés
Best Commercial Bank, Angola
Banco Espírito Santo Angola
Best Commercial Bank, Bahrain
Khaleeji Commercial Bank
Best Commercial Bank, Belarus
BPS-Sberbank
Best Commercial Bank, Belgium
AXA Bank
Best Commercial Bank, Bolivia
BANCO GANADERO
Best Commercial Bank, Botswana
First National Bank of Botswana
Best Commercial Bank, Bulgaria
Postbank
Best Commercial Bank, Brazil
HSBC Bank Brazil
Best Commercial Bank, Canada
CIBC
Best Commercial Bank, Cape Verde
Caixa Económica de Cabo Verde
Best Commercial Bank, Channel Islands
Standard Bank
Best Commercial Bank, Chile
CorpBanca
Best Commercial Bank, China
China Construction Bank
Best Commercial Bank, Colombia
Banco de Bogotá
Best Commercial Bank, Costa Rica
Banco Nacional De Costa Rica
Best Commercial Bank, Dominican Republic
Banco Del Progreso
Best Commercial Bank, Ecuador
Banco General Rumiñahui – BGR
Best Commercial Bank, El Salvador
Banco Promerica
Best Commercial Bank, Georgia
Cartubank
Best Commercial Bank, Germany
BayernLB
Best Commercial Bank, Ghana
Standard Chartered Bank Ghana
Best Commercial Bank, Guatemala
Banco Agromercantil
Best Commercial Bank, Honduras
BAC Honduras
Best Commercial Bank, Hong Kong
HSBC Hong Kong
Best Commercial Bank, India
HSBC India
Best Commercial Bank, Indonesia
Bank Uob Buana
Best Commercial Bank, Italy
Intesa SanPaolo
Best Commercial Bank, Japan
Aozora Bank
Best Commercial Bank, Jordan
The Housing Bank For Trade & Finance
Best Commercial Bank, Kazakhstan
Tsesnabank
Best Commercial Bank, Kenya
Equity Bank
Best Commercial Bank, Kuwait
Kuwait International Bank
Best Commercial Bank, Lebanon
(BML) Banque Misr Liban
Best Commercial Bank, Luxembourg
Banque Et Caisse D’Epargine L’etat
Best Commercial Bank, Macau
China Construction Bank
Best Commercial Bank, Malaysia
CIMB Bank
Best Commercial Bank, Malta
Bank Of Valletta
Best Commercial Bank, Mexico
Banorte-Ixe
Best Commercial Bank, Mongolia
Khan Bank
Best Commercial Bank, Mozambique
Banco BCI
Best Commercial Bank, Namibia
Bank Windhoek
Best Commercial Bank, Nicaragua
BDF
Best Commercial Bank, Nigeria
Guaranty Trust Bank
Best Commercial Bank, Oman
BankDhofar
Best Commercial Bank, Panama
Credicorp Bank | Watch the award presentation
Best Commercial Bank, Pakistan
MCB Bank
Best Commercial Bank, Paraguay
Banco Atlas
Best Commercial Bank, Peru
Interbank
Best Commercial Bank, Philippines
Metrobank
Best Commercial Bank, Poland
BRE Bank
Best Commercial Bank, Portugal
ActivoBank
Best Commercial Bank, Qatar
Ahli Bank Q.S.C | Watch the award presentation
Best Commercial Bank, Romania
Banca Comerciala Carpatica
Best Commercial Bank, Singapore
HSBC Singapore
Best Commercial Bank, Slovakia
Komercní banka
Best Commercial Bank, Slovenia
Abanka
Best Commercial Bank, South Africa
Absa Bank
Best Commercial Bank, Sri Lanka
NDB Bank
Best Commercial Bank, Thailand
Siam Commercial Bank
Best Commercial Bank, Taiwan
First Bank
Best Commercial Bank, Russia
MDM Bank
Best Commercial Bank, Saudi Arabia
Saudi Investment Bank
Best Commercial Bank, South Korea
Korea Exchange Bank
Best Commercial Bank, Switzerland
BEKB
Best Commercial Bank, UAE
Invest Bank
Best Commercial Bank, Ukraine
Bank Forum
Best Commercial Bank, Uruguay
Banco Bandes
Best Commercial Bank, Uzbekistan
Kapital Bank
Best Commercial Bank, US
PNC
Best Commercial Bank, Venezuela
Bancaribe
Best Commercial Bank, Zambia
Zanaco
Best Banking Groups
Best Banking Group, Albania
Credins Bank
Best Banking Group, Armenia
Ameriabank
Best Banking Group, Angola
Banco Angolano de Investimentos
Best Banking Group, Austria
UniCredit Bank Austria
Best Banking Group, Argentina
Banco Macro
Best Banking Group, Bahrain
National Bank of Bahrain
Best Banking Group, Belgium
BNP Paribas Fortis
Best Banking Group, Belarus
Belarusbank
Best Banking Group, Bolivia
Banco Mercantil Santa Cruz
Best Banking Group, Botswana
Barclays Bank of Botswana
Best Banking Group, Brazil
Banco Bradesco
Best Banking Group, Brunei
Baiduri Bank
Best Banking Group, Channel Islands
HSBC Group
Best Banking Group, Chile
BCI
Best Banking Group, China
ICBC
Best Banking Group, Colombia
Banco de Occidente
Best Banking Group, Costa Rica
Banco de Costa Rica
Best Banking Group, Cyprus
Bank of Cyprus
Best Banking Group, Dominican Republic
Banco Popular Dominicano
Best Banking Group, Ecuador
Pacific National Bank
Best Banking Group, El Salvador
Banco Agricola
Best Banking Group, France
Credit Mutuel
Best Banking Group, Germany
Deutsche Bank
Best Banking Group, Ghana
Ecobank
Best Banking Group, Guatemala
Banrural
Best Banking Group, Hong Kong
HSBC
Best Banking Group, India
YES BANK
Best Banking Group, Italy
UniCredit
Best Banking Group, Israel
Bank Leumi
Best Banking Group, Jamaica
First Global Bank
Best Banking Group, Japan
Mitsubishi UFJ Financial Group
Best Banking Group, Jordan
Jordan Islamic Bank
Best Banking Group, Kazakhstan
Eurasian Bank
Best Banking Group, Kenya
Kenya Commercial Bank
Best Banking Group, Kuwait
Burgan Bank
Best Banking Group, Lebanon
BankMed
Best Banking Group, Liechtenstein
Liechtensteinische Landesbank
Best Banking Group, Luxembourg
BGL BNP Paribas
Best Banking Group, Macau
ICBC (Macau)
Best Banking Group, Macedonia
NLB Tutunska Banka
Best Banking Group, Malaysia
Public Bank
Best Banking Group, Malta
HSBC Bank Malta
Best Banking Group, Mexico
Banco Inbursa
Best Banking Group, Morocco
Attijariwafa Bank
Best Banking Group, Mozambique
Millennium bim Mozambique
Best Banking Group, Namibia
First National Bank
Best Banking Group, Netherlands
ING
Best Banking Group, Nigeria
Guaranty Trust Bank
Best Banking Group, Nicaragua
Banpro Nicaragua
Best Banking Group, Denmark, Norway & Sweden
Nordea Bank
Best Banking Group, Oman
Bank Sohar
Best Banking Group, Qatar
Qatar Islamic Bank
Best Banking Group, Pakistan
Allied Bank Limited
Best Banking Group, Panama
BancoPanamá
Best Banking Group, Paraguay
Sudameris Bank
Best Banking Group, Peru
Banco de Crédito del Perú
Best Banking Group, Philippines
Rizal Commercial Banking Corporation
Best Banking Group, Portugal
Banco Espirito Santo
Best Banking Group, Russia
Bank St Petersburg
Best Banking Group, Saudi Arabia
Riyad Bank
Best Banking Group, Singapore
DBS Bank
Best Banking Group, Slovakia
Slovenska Sporitelna
Best Banking Group, South Africa
Standard Bank
Best Banking Group, South Korea
Woori Bank
Best Banking Group, Sri Lanka
Sampath Bank
Best Banking Group, Switzerland
UBS
Best Banking Group, Thailand
TMB
Best Banking Group, Turkey
Yapı Kredi
Best Banking Group, UAE
Union National Bank
Best Banking Group, UK
HSBC
Best Banking Group, Ukraine
First Ukrainian International Bank
Best Banking Group, Uruguay
BROU
Best Banking Group, Venezuela
Banco De Venezuela
Technology Awards 2012
Best Technology CEO
Benjamin Mophatlane, Business Connexion
North America
Best Retail Banking Systems Provider
Fidelity National Information Services
Best Private Banking Systems Provider
CAIS Group
Best Mobile Banking Technology
NCR
Best Financial Technology Consultants
FTI Consulting
Best Middle & Back Office Solutions Provider
Financial Software Systems
Best IT Outsourcing Company
IBM
Best Network Infrastructure Provider
Amphenol
Best Security Technology Company
McAfee
Best Wireless Technology Provider
SATO
Best Business Intelligence Software Provider
MicroStrategy
Best Automated Banking Branch Technology
Cisco
Best Environmental Services Technology Company
Quantum Technologies
Best Accounting Technology
Intuit Quickbooks
Best Technology & Innovation Park
Stanford
Research Park
Best Payment Technology Provider
Ingenico
Western Europe
Best Retail Banking Systems Provider
Strategic Information Technology
Strategic Information Technology
Best Private Banking Systems Provider
CAIS Group
Best Mobile Banking Technology
NCR
Best Financial Technology Consultants
IBM
Best Middle & Back Office Solutions Provider
Rule Financial
Best IT Outsourcing Company
Frontier Technology
Best Network Infrastructure Provider
InterTech
Best Security Technology Company
F-Secure
Best Wireless Technology Provider
Calypso Networks Association
Best Business Intelligence Software Provider
MicroStrategy
Best Automated Banking Branch Technology
Diebold
Best Environmental Services Technology Company
AMEC
Best Accounting Technology
NetSuite
Best Technology & Innovation Park
Adlershof
Best Payment Technology Provider
Ingenico
Eastern Europe
Best Retail Banking Systems Provider
Diasoft
Diasoft
Best Private Banking Systems Provider
ARBES Technologies
Best Mobile Banking Technology
Banksoft
Best Financial Technology Consultants
Advanced Risk Management
Best Middle & Back Office Solutions Provider
Calypso Technology
Best IT Outsourcing Company
GOWI
Best Network Infrastructure
Provider
Veracomp
Best Security Technology Company
Symantec
Best Wireless Technology Provider
ASEC
Best Business Intelligence Software Provider
Exact
Best Automated Banking Branch Technology
AXSPoint
Best Environmental Services Technology Company
ABB
Best Accounting Technology
Cashbus
Best Technology & Innovation Park
Suwałki Science & Technology Park
Best Payment Technology Provider
Ingenico
Latin America
Best Retail Banking Systems Provider
Itautec
Itautec
Best Private Banking Systems Provider
Murex
Mobile Banking Technology
Sybase
Best Financial Technology Consultants
AEC
Best Middle & Back Office Solutions Provider
Proxis
Best IT Outsourcing Company
CINQ Technologies
Best Network Infrastructure Provider
Red Hat
Best Security Technology Company
Itautec
Best Wireless Technology Provider
Venture Research
Best Business Intelligence Software Provider
Panorama Software
Best Automated Banking Branch Technology
Itautec
Best Environmental Services Technology Company
Hitachi
Best Accounting Technology
SYSPRO
Best Technology & Innovation Park
Zonamerica
Best Payment Technology Provider
Ingenico
Middle East
Best Retail Banking Systems Provider
Mubasher
Mubasher
Best Private Banking Systems Provider
CAIS Group
Best Mobile Banking Technology
CR2
Best Financial Technology Consultants
Mubasher
Best Middle & Back Office Solutions Provider
Paladyne
Best IT Outsourcing Company
W3infotech
Best Network Infrastructure Provider
Ericsson
Best Security Technology Company
Symantec
Best Wireless Technology Provider
Al Fahim Group
Best Business Intelligence Software Provider
Sybase
Best Automated Banking Branch Technology
Mubasher
Best Environmental Services Technology Company
Bayer
Best Accounting Technology
Exact
Best Technology & Innovation Park
Qatar Science & Technology Park
Best Payment Technology Provider
Ingenico
Asia
Best Retail Banking Systems Provider
InfraSoft
InfraSoft
Best Private Banking Systems Provider
Infosys
Best Mobile Banking Technology
Rubik
Best Financial Technology Consultants
Jatis Group
Best Middle & Back Office Solutions Provider
IRESS Market Technology
Best IT Outsourcing Company
Colnovation Technologies
Best Network Infrastructure Provider
MindTree
Best Security Technology Company
AVG
Best Wireless Technology Provider
Impinj
Best Business Intelligence Software Provider
Fujitsu
Best Automated Banking Branch Technology
i-flex
Best Environmental Services Technology Company
Flour Group
Best Accounting Technology
Intuit Quickbooks
Best Technology & Innovation Park
Hong Kong Science & Technology Parks Corporation
Best Payment Technology Provider
Ingenico
Australasia
Best Retail Banking Systems Provider
VMware
VMware
Best Private Banking Systems Provider
DST Global Solutions
Best Mobile Banking Technology
Sandstone Technology
Best Financial Technology Consultants
Deloitte
Best Middle & Back Office Solutions Provider
PAC-INVEST
Best IT Outsourcing Company
Cognizant
Best Network Infrastructure Provider
Decimal
Best Security Technology Company
DS3
Best Wireless Technology Provider
Telstra
Best Business Intelligence Software Provider
SAS
Best Automated Banking Branch Technology
ITS
Best Environmental Services Technology Company
Veolia
Best Accounting Technology
Palladium Technology
Best Technology & Innovation Park
Australian Technology Park
Best Payment Technology Provider
Ingenico
Africa
Best Retail Banking Systems Provider
RPC Data
RPC Data
Best Private Banking Systems Provider
IRESS
Best Mobile Banking Technology
Zain
Best Financial Technology Consultants
The IQ Business Group
Best Middle & Back Office Solutions Provider
Infosys
Best IT Outsourcing Company
Netsurit
Best Network Infrastructure Provider
MTI
Best Security Technology Company
MessageLabs
Best Wireless Technology Provider
RSA
Best Business Intelligence Software Provider
TIBCO
Best Automated Banking Branch Technology
Siebel Systems
Best Environmental Services Technology Company
Dow AgroSciences
Best Accounting Technology
Workday
Best Technology & Innovation Park
Casablanca Technopark
Best Payment Technology Provider
Ingenico
Investment Management Awards 2012
Best Investment Management Company, Argentina
BBVA Banco Franco
Best Investment Management Company, Austria
Hypo Landesbank Vorarlberg
Best Investment Management Company, Baltic States
Citadele Asset Management
Best Investment Management Company, Belgium
CapitalatWork
Best Investment Management Company, Canada
Beutel Goodman & Company
Best Investment Management Company, Caribbean
Guardian Asset Management
Best Investment Management Company, Chile
Asset Chile
Best Investment Management Company, China
Harvest Fund Management
Best Investment Management Company, Croatia
Hypo Alpe-Adria-Bank
Best Investment Management Company, Czech Republic
ING Investment Management
Best Investment Management Company, France
Amundi Corporate
Best Investment Management Company, Finland
Evli Bank Wealth Management
Best Investment Management Company, Germany
DB Advisors
Best Investment Management Company, Hong Kong
BOCI-Prudential Asset Management
Best Investment Management Company, Hungary
OTP Fund Management
Best Investment Management Company, India
Tata Asset Management
Best Investment Management Company, Indonesia
Batavia Prosperindo Aset Manajemen
Best Investment Management Company, Italy
Eurizon Capital
Best Investment Management Company, Ireland
Kleinwort Benson Investors
Best Investment Management Company, Kazakhstan
Compass Asset Management
Best Investment Management Company, Middle East
KMEFIC
Best Investment Management Company, Luxembourg
Kredietrust Luxembourg
Best Investment Management Company, Malaysia
Funds Management, AmInvestment Bank
Best Investment Management Company, Mexico
BBVA Bancomer Asset Management
Best Investment Management Company, Netherlands
Delta Lloyd Asset Management
Best Investment Management Company, Norway
SKAGEN Funds
Best Investment Management Company, Poland
Innova Capital
Best Investment Management Company, Portugal
S.G.F.P. Banco de Portugal
Best Investment Management Company, Singapore
Franklin Templeton Investments
Best Investment Management Company, South Africa
Investec Asset Management
Best Investment Management Company, Spain
Amundi Iberia
Best Investment Management Company, Switzerland
Swisscanto Asset Management
Best Investment Management Company, Taiwan
Yuanta Financial Holdings
Best Investment Management Company, Thailand
UOB Asset Management
Best Investment Management Company, Turkey
Ak Asset Management
Best Investment Management Company, Ukraine
Investment Capital Ukraine
Best Investment Management Company, UK
Threadneedle Asset Management
Best Investment Management Company, Vietnam
VinaCapital Investment Management
“Negative pigs come to feed”
As the radiochemist Frederick Soddy (1877–1956) pointed out, there is a fundamental disconnect in the economy between money and real wealth. Real wealth is made up of stocks of actual physical objects. Money, on the other hand, is not real wealth, but debt – a promise to pay in the future. While actual objects are subject to various physical laws, money is subject only to the abstract laws of mathematics. A consequence is that the debts of a person or society can explode until they bear no relation to everyday life.
Soddy was born in Eastbourne, England, but moved to Montreal in 1900 where he worked with Ernest Rutherford on the newly discovered phenomenon of radioactivity. There he and Rutherford discovered that radioactivity is due to the transmutation of elements: for example, uranium decays to radium, giving off radioactive particles in the process.
Following the award of the Nobel Prize for Chemistry in 1921, Soddy switched his attention from physics to economics. Having predicted correctly that nuclear weapons would soon be developed, he realised that the world was not a safe place for them, largely because of inadequate economic theories. He argued that many economic problems are created by the confusion between real wealth and what he called virtual wealth (i.e. money), which eventually manifests itself in the form of economic crises.
Cashing in
Real wealth can be calculated by adding up the values of objects. To use one of Soddy’s examples from his 1926 book Wealth, Virtual Wealth, and Debt, a farmer might have two pigs, which is twice as good as having one pig. Paper money, in contrast, has no value in itself, but only represents a debt, so it is actually a negative quantity. Such things do not exist in nature. As Soddy patiently explained: “The positive physical quantity, two pigs, is something anyone may see with their own eyes. It is impossible to see minus two pigs. The least number of pigs that can be physically dealt with is zero.”
Another difference between real and virtual wealth is that the former is subject to basic physical principles, including the effects of decay. Everything has a shelf-life, including pork products. However, money is just a number, so is not constrained by reality in the same way. Under fractional reserve banking, banks can even create it out of thin air. As Soddy wrote: “The virtual wealth of a community is not a physical but an imaginary negative wealth quantity. It does not obey the laws of conservation, but is of psychological origin.” Of course the value of anything, including gold bars, is largely psychological as well, but at least there is a connection with the real world.
The problem with this arrangement is that, without safeguards in place, virtual wealth soon exceeds the real wealth. The effect is multiplied by the existence of financial instruments such as derivatives. During a crisis, people want to swap virtual wealth for the real thing; but because virtual wealth is bigger than the real wealth, this can’t happen. In the absence of inflation, the only remedy is wealth destruction through stock market collapses, bankruptcies, foreclosures, bond defaults, forced taxation, and so on.
Out of steam
To stabilise the financial system, Soddy made a number of recommendations. These included abandoning the gold standard, letting international exchange rates float and ending fractional reserve banking. Perhaps because he was an outsider, his work was completely ignored by mainstream economists. A 1956 obituary in Science described him as a ‘crank’ on the subject of monetary policy: “His fanatical devotion to schemes of this sort, derided by the orthodox economists… was surprising to many who knew him first as a pioneer in chemical science”.
Despite this opprobrium, most of his policy prescriptions, such as replacing the gold standard with floating exchange rates, were eventually accepted in mainstream society. In fact, the only one that didn’t was his idea of a 100 percent reserve requirement for banks. The same plan was later promoted by the likes of Irving Fisher of Yale University, who called his version 100 percent money (he seemed unaware of Soddy’s work), and Milton Friedman, though apparently they weren’t considered cranks. In a 1927 review of Soddy’s work, Frank Knight of the University of Chicago agreed with Soddy that fractional reserve banking meant that ‘important evils result, notably the frightful instability of the whole economic system.’
Soddy compared the control of the money supply to the governor on a steam engine, which regulated the engine’s speed by providing feedback. If the regulator was properly designed, then any small alteration to the speed would be reduced through negative feedback.
However, this wasn’t the only possibility: a flaw in the design could mean that the regulator provided positive feedback, so that the engine oscillated wildly until it fell apart.
The price to pay
In the economy, the money supply tends to expand during good times because asset prices are rising, which allows more debt to be issued and excites entrepreneurial spirits. During a recession, however, credit dries up and the flow of money slows, which exacerbates the downturn. It therefore acts as a positive feedback, rather than a controlling negative feedback. The result, to use Knight’s phrase, is that the system can suffer from a ‘frightful instability’, the likes of which we are seeing now in Europe.
More recently, the idea of 100 percent reserves has been championed by ecological economists such as Herman Daly. The degree of positive feedback can also be moderated to an extent by increasing minimum reserves, and perhaps raising or lowering them dynamically to counterbalance economic trends.
If he were alive today, Soddy would not be surprised to see the tensions in Europe and elsewhere as countries grapple with the abstract mathematics of debt. He would also know that debts which have grown to an unreal size can never be satisfied in the real world. After all, we can’t have negative pigs.
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