World Bank/IMF special focus: Global economic outlook and financial stability

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World Bank/IMF special focus: Global economic outlook and financial stability

In this special edition, Euromoney announces its annual Finance minister and Central bank governor of the year awards; interviews Paul Tucker, deputy governor Bank of England, who outlines his tough message to banks on capital and other regulatory requirements; and presents its country risk index, containing global economic projections and political risk rankings. Euromoney also comments on the current banking boom and its sustainability, and suggests ways to stabilize the financial system.

Awards:

Central bank governor of the year: Durmus Yilmaz, Turkey

With nearly 30 years’ experience at the central bank, Durmus Yilmaz is the ideal person to steer the country’s financial system through the global credit crisis. Sudip Roy reports.

Finance minister of the year: Jim Flaherty, Canada

The finance minister has enhanced his country’s reputation for sound fiscal policy that takes full account of social justice, while a strong regulatory regime has kept the financial sector out of the chaos. Helen Avery reports.


Interview:

Tucker’s tough message

The Bank of England deputy governor understands bankers’ fear of excessive regulatory zeal, but he’s not easing up. He insists banks should improve the quality of their capital and sees no role at all for subordinated debt. He wants strong banks to blow the whistle on the weak and to know that, in future, the shareholders of surviving banks will pick up the tab for bailing out the system. Peter Lee reports 



Research:


Country risk September 2009: A world in flux

With the international economy more volatile than ever, global investors are paying more attention to country risk analysis. Risk looms both where you most and least expect it. In Euromoney’s latest rankings, the US has fallen out of the top 10. Jacqueline Cutler reports.

Comment:

The edge of reason 

Markets boom. Equity indices soar. New-issuance levels return to pre-crunch highs. Banks turn bumper profits. Maligned sectors return.

Even the people at the banks doing this business can scarcely believe it is happening.


The future of banking: Banking's next top model 

Bank business models have to change. Capital requirements will be higher. Leverage and risk will be lower. But there is a danger that regulators will try to make the system too safe. That’s if they ever manage to coordinate their actions. In the meantime, bank leaders are trying to find the best model for their own institutions, while managing the fallout from the credit crunch and second-guessing the lawmakers.


A blueprint for banking

Government policymakers and regulators around the world are striving to agree new rules to make the financial system safer. Euromoney has a few recommendations.
















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