Emerging-market investments have provided a way for banks in developed countries to overcome reduced growth opportunities in small, maturing and concentrated home markets, according to a report by Standard & Poor’s. However, while the report found that banks have been attracted to these markets by prospects of wider margins, improving macroeconomic conditions and higher growth, the reality of some of these markets has proved less appealing. ‘With volatile profitability, unstable economies, and sluggish growth, investing in emerging markets requires significant resources and capital,’ said Jesús Martinez, a Standard & Poor’s credit analyst. ‘More importantly, banks in emerging markets face higher economic and industry risks, a factor that has sometimes been underestimated by Western banks in their investment decisions,’ he added. In the mid- and late 1990s, financial institutions, mainly from Western Europe, acquired banks in emerging markets for a total of more than €65 billion.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.