"If this evolves into a refined global framework that clarifies home-host responsibilities and supports cross-border trust, that is an important development. That would help support the global effort to end too-big-to fail. If this encourages the global community to develop thoughtful, consistent architecture in this area, this could end up being a positive outcome overall"
Wilson Ervin, vice-chairman in the group executive office at Credit Suisse is a cautious optimist when it comes to banking subsidiarization
(see US fires global subsidiarization starting gun)
"In the past there was very close analysis of metrics such as buffers-to-trigger and contractual terms over discretionary switching off of coupons. Last year, when issuers provided statements of intention to prioritize AT1 coupons over equity dividends, that attracted a lot of attention. Such statements get less attention now. Today, you hardly even need to roadshow AT1 deals. They almost sell themselves"
Edward Stevenson, head of FIG DCM at BNP Paribas, on the AT1 goldrush among Europe’s banks
(see AT1: Investors fill banks’ capital begging bowls)
"Banks should be increasingly concerned about a disintermediation of deposits, particularly retail deposits. Banks are losing, bit by bit, the stream of silver that keeps them afloat, and this will be a big challenge for them in the coming year"
Jason Bedford, Hong Kong-based independent analyst, on the growing competitive threat to China’s state lenders
(see Banking in China 2.0)
"One of the reasons so many Indonesians have become religious is because they have to deal with the government. You submit a document and you never know when it will be completed. So you wait for everything. And you need to pray for the day they contact you and say everything is settled"
Muhammad Chatib Basri, Indonesia’s finance minister, makes a gentle jest about his country’s notorious bureaucracy