The global capital markets landscape is undergoing a major transformation as regulators from the G20 and beyond impose stringent capital, leverage and liquidity controls on the banking sector in a quest to solve the Too Big to Fail issue and take taxpayer-funded bailouts, systemic risk and contagion off the table once and for all.
What impact will this have on the transmission of credit into the real economy? Whether it’s Basel III, Total Loss-Absorbing Capacity (TLAC), Minimum Requirement for own funds and Eligible Liabilities (MREL), Liquidity Coverage Ratio (LCR), Leverage Ratio or a whole host of other initiatives, banks around the world are being forced to reappraise their business models and client engagement modes, including their approach to lending.
How are all of these global themes playing out in Asia (ex-Japan, ex-Australia)? What has been the Asian policy response to the tidal wave of new global regulation? What essential Asian flavors are evolving around the political and regulatory agenda for banking and financial services?
The structure of Asian debt funding has changed markedly in recent years. The formerly bank-funded regional economy has blossomed into a debt capital markets-driven one. In the first 10 months or so of 2014, Asian local currency bond issuance exceeded US$394 billion against a syndicated lending total of US$339 billion. G3 bond issuance added US$176 billion, making bond market responsible for close to two-thirds of the total stock of issuance. Among topics to be discussed:
- Making sense of the Asian policy and regulatory response to the raft of global regulation
- Are Asian banks in good shape to fund regional growth? Evaluating Asian bank capital issuance
- Will Asian banks develop sustainable super-regional strategies?
- Will capital markets take over the heavy lifting from the loan market?
- Can local currency solutions obviate the need for G3 bond issuance?
- Are moves to promote bond market regionalisation over-done?
- The RMB and its role in the Asian capital markets story
- Green Bonds and Sustainable Solutions: where’s the Asian response?
- Infrastructure: the remaining conundrum.
- Bringing emerging Asia jurisdictions into the capital markets economy
- How can India’s capital markets help meet the country’s infrastructure needs?
Chairman, State Committee for Securities of the Republic of Azerbaijan
Chairperson, State Bank of India
Head of Asia Sovereign Risk, Moody's Investors Service
Head of Debt Capital Markets, Asia Pacific, HSBC
Deputy Managing Director, Export-Import Bank of India
Vice President, Private Sector and Cofinancing Operations, Asian Development Bank
Editor, IFR Asia, Thomson Reuters