colombiaBanco de BogotáBanco de Bogotá is known for offering its customers safety and reliability, a focus that it maintains by providing increased security with chip technology. The bank plays an active role in advancing the national economy, as well as helping individuals with a variety of loans; it is widely popular for its flexible and attractive mortgages.
Year: 2015
Banco de Crédito e Inversiones
chileBanco de Crédito e InversionesHeadquartered in Santiago, BCI is one of the largest banks in Chile, yet still manages to maintain the same core values that it began with in 1937. As such, it continues to deliver excellent customer service and prudent risk management, while acting with an innovative spirit to serve different sectors of Chile’s economy.
Deutsche Postbank
germanyDeutsche PostbankCreated in 1990 after the demerger of the banking and postal divisions of Deutsche Bundespost, Deutsche Postbank has since established itself as a major banking group within Germany’s competitive market. A subsidiary of Deustche Bank since 2012, the firm has an extensive network of operations across Germany.
Banco Popular Dominicano
dominican republicBanco Popular DominicanoSince the bank’s establishment over half a century ago, Banco Popular Dominicano has played a key part in pioneering many of the country’s banking firsts. With close to 150 branches to its name and a comprehensive portfolio of solutions spanning savings, investments and insurance, the bank is among the nation’s largest.
HSBC
china HSBCHSBC China was established in 1865, and over the years has grown into one of the world’s biggest banking and financial services providers. With more than 6,100 offices scattered across the face of the planet, the sheer scale of its operation has allowed it to draw new customers and develop local expertise in mainland China and beyond.
Scotiabank
canadaScotiabankAs a respected local player and one of the continent’s leading names in financial services, Scotiabank serves some 21 million customers worldwide. Underpinned by an impressive global footprint, a committed team of more than 86,000 employees and a clearly defined strategy, Scotiabank is an integral force behind Canada’s growing banking community.
ANZ Royal Bank
cambodia ANZ Royal BankSince opening in 2005, ANZ Royal Bank has enjoyed global recognition as it continually improves and spreads its influence across Cambodia. The firm has placed great emphasis on customer service, and the expansion strategies over the last few years have paid off with more and more success in domestic markets.
Banco do Brasil
brazilBanco do BrasilA leader in banking and financial services in Brazil, Banco do Brasil offers a plethora of services and products that have driven it to become a market leader for both individual and corporate customers. The organisation is a fully diversified and strategically motivated platform that sustains a positive and growing network across the country.
RZB Group
AustriaRZB GroupFounded in 1927, RZB is Austria’s third-largest bank and the RZB Group currently ranks as the largest banking group in the country, measured by balance sheet. The group boasts a network of almost 1,600 branches, and has played an important role in shepherding the region’s thriving banking community.
MoraBanc
AndorraMoraBancThe history of MoraBanc corresponds with its nature as a company – constantly evolving with its surroundings and consistently placing family values at its heart. The Andorran banking group has a solid reputation for professionalism and stands out for its deep-set respect for transparency and legality, while maintaining a careful focus on customer needs.
Baiduri Bank
bruneiBaiduri BankBaiduri Bank is a leading commercial bank in Brunei. Together with its wholly owned subsidiaries Baiduri Finance, an automobile finance company, and Baiduri Capital, a securities trading company, it offers a comprehensive range of financial products and services to meet the diverse needs of individuals and businesses in Brunei.
Banco Mercantil Santa Cruz
boliviaBanco Mercantil Santa CruzBorn of a merger between Banco Mercantil and Banco Santa Cruz, BMSC is currently the largest financial institution in Bolivia and is a key contributor to the national economy. With over a century of experience under its belt and a host of banking services to its name, BMSC enjoys an outstanding reputation.
Commbank
australia CommbankCommbank is Australia’s biggest provider of integrated financial services. Specialising in retail, premium, business and institutional banking, the firm also works in fund management, insurance and investment. Its goal is to come top for shareholder return over each five-year period, and it intends to achieve this through its diversified business.
M&A activity surges to record levels
With stock markets hitting severe turbulence in August, many observers expected a level of restraint by big firms around the world. However, according to research by mergers analyst Dealogic, August represented the busiest on record for M&A deals in US history, continuing a trend of strong activity throughout this year.
Activity for this year has already surpassed $3trn, according to
Thomson Reuters
Activity for this year has already surpassed $3trn, according to Thomson Reuters – which is the highest amount since pre-crisis levels in 2007. According to the Financial Times, recent M&A deals include US private equity giant Blackstone’s $6bn deal to acquire hotel group Strategic Hotels, as well as Japanese conglomerate Mitsui Sumitomo’s $5.3bn offer for British insurance firm Amlin. In the UK alone, deals surged to over £260bn, including the recent £6bn merger between betting companies Paddy Power and Betfair.
One area experiencing considerable consolidation is the technology sector. According to Dealogic, global M&A activity hit $1.9bn earlier this month for 2015 so far, which is up 23 percent on the same period in 2014. This represents the highest level since the tech bubble of 2000. Deals include eBay’s spinning off of Paypal for $49.2bn, which completed in July. Avago Technologies has also bid $36.6bn for Broadcom, which is pending approval.
While high levels of M&A could be seen as a reflection of confidence within many markets, they may also represent a desire to consolidate industries in the face of uncertain economic conditions in the coming months.
Speaking to the Financial Times, Chris Ventresca, JP Morgan’s global co-head of M&A, said that many of these mergers could be to create larger firms more resistant to market volatility. “While market volatility generally dampens M&A activity, for some deals it may make sellers more willing to transact to protect value for their shareholders or consider merging to create a larger, more stable pro forma company.”
A history of foreign exchange
1875
Before 1875, a double standard for silver and gold was used for international payments, causing difficulties when their value rose and fell as a result of supply and demand. To eradicate this, the gold standard was informally created, guaranteeing the two-way conversion of currency into a set amount of gold. The world’s major economies pegged a specific amount of respective currencies to an ounce of gold – the difference in price became their exchange rates.
1900
Following the rejection of the proposed international bimetallic standard by the British, the US finally embraced the gold standard on an official basis. US President William McKinley signed the Gold Standard Act and established that gold was the only reserve accepted for redeeming coinage and paper currency, thereby bringing an end to bimetallism. After this, every dollar issued by the US was equivalent to the value of 23.22 grains of gold.
1933
The gold system started to break down during the Second World War when European powers printed more money than they had in gold reserves to fund military projects. The financial crisis of 1933, during which large volumes of gold flowed out of the US Federal Reserve, led to the US stating it could no longer fulfil convert currency into gold. The Gold Standard ended when US President Franklin Roosevelt made the private ownership of gold illegal, except in the case of jewellery.
1944
Over 700 delegates met at the UN Monetary and Financial Conference in New Hampshire to fill the vacuum left behind by the Gold Standard. A mechanism for fixed exchange rates was established with the appointment of the US dollar as the international reserve currency. It was decided that international agencies would be created in order to monitor economic activity across the globe. Representatives of 45 countries signed the agreement and the Bretton Woods System was born.
1945
The Second World War ended in September, allowing the Bretton Woods System full reign. Fixed at $35 per ounce, the US dollar quickly gained traction as an international reserve currency. While the world had begun the painstaking process of economic recovery, the International Bank for Reconstruction and Development was founded to offer financial assistance. Problems resurfaced as surpluses in US trade soon led to a shortage in dollars overseas.
1947
The IMF became operational, acting as a supranational body to promote global monetary cooperation and provide loans to developing nations. The General Agreement on Tariffs and Trade was also signed with the aim of stimulating international trade. Yet, trouble in the system began as military spending, foreign aid and international investment in the 1960s meant that the US no longer held the reserves necessary to cover the volume of dollars in circulation around the world.
1971
US President Richard Nixon announced his new economic programme, known as the ‘Nixon Shock’. The US refused to exchange US dollars for gold, marking the end of the Bretton Woods system. After months of negotiations, the Smithsonian Agreement was ratified and had established a new set of fixed exchange rates based on the devalued dollar. Despite being heralded for its significance in financial history, the Smithsonian Agreement began to break down a year later.
1976
Following the collapse of the Smithsonian exchange rate system, IMF members met in Jamaica to agree on a new international monetary framework. The Jamaica Agreement abolished gold as a reserve asset and formalised the floating exchange rate system that survives to this day. Countries around the world have since chosen their own method of fixed or floating, allowing either central banks or demand to determine exchange rates.
