Basel regulators are trying to finalise changes on how to calculate banks’ risky assets. But US and Europe are at loggerheads about what these should look like. After postponing a decision in January, and failing to reach a conclusion in early March, a compromise is proving to be tricky.
The development of digital platforms that enable direct global money transfer is a nascent but fast growing business model from the remittance industry. The model does not envisage traditional banks as part of the long term plans, and competes with the largest global money operators head on.
It is clear that China’s goal of becoming the world’s largest economy by 2020 and the internationalisation of the RMB are two initiatives that are symbiotic in nature. With the recent IMF decision to include the currency in the SDR currency basket, what does the future hold for the RMB?