SET Training - Banking and Fintech

Introduction: Beyond the Banks Stanley Epstein - When we think of the 2008 Great Financial Crisis, the story that comes to mind is one of failing banks, risky mortgages, and a system brought to its knees by the very institutions meant to be its bedrock. It was, in the popular imagination and in reality, a “banking crisis.” But in the years since, the global financial system has undergone a series of profound structural changes that are less visible to the public but are every bit as important. This isn’t just a story about stricter bank regulations. It’s about how the fundamental ways money moves around the world have been completely reconfigured. It’s a story about how the demand for “safe” government debt, fuelled by your pension fund, created a gargantuan “hidden” market that now transmits financial shocks in ways we’ve never seen before—challenging the very power of central banks. This article reveals four of the most impactful and surprising shifts that define our modern financial...

Project Nexus aims to connect domestic instant payment systems to improve the speed, cost, transparency of and access to cross-border payments. The BIS Innovation Hub is now working with the central banks of India, Malaysia, the Philippines, Singapore and Thailand as they work towards live implementation of Nexus

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The U.S. dollar is the world’s dominant currency and plays a key role in global trade. While that may seem like good news to Americans, it’s bad news for much of the world.  “So here’s the paradox. The rest of the world despises how dominant the dollar is, yet they go to the U.S. dollar, because there really isn’t much of an alternative,” said Eswar Prasad, an economist at the Brookings Institution and professor at Cornell University.  Despite constant predictions of the dollar’s demise, nearly 60% of the world’s central banks’ foreign exchange reserves – the money the hold to cover unexpected financial emergencies – are invested in dollar-denominated assets.  The share of the U.S. dollar as a payment currency worldwide is more than 40%, while it makes up more than 60% of international debt and 50% of loans globally.  Besides being the go-to currency for international financial transactions, commodities such as oil are also bought and sold in U.S. dollars.  The ...