Finance
European Banking Union comes with fiscal discipline
By end 2014, the European Banking Union will be a reality. Aside from being aimed at restoring banking sector stability, there are far-reaching implications for fiscal discipline. The long-awaited European
Senegal sukuk bond signals wider African interest in Islamic finance
Senegal plans to issue an Islamic law compliant bond in 2014, building on momentum in sukuk issuance globally. Senegal’s government looks set to issue a type of Islamic bond, known
US Decline Series: Are the dollar’s days as reserve currency numbered?
Despite speculation that the days of the US dollar as the world’s reserve currency will soon be over, a number of factors make such a changing of the guard unlikely. This
Sanctions on Russia also hit foreign investment
On 28 April 2014, the U.S. launched its third round of sanctions on Russia, aimed at President Vladimir Putin’s cronies and their businesses. As the situation continues to deteriorate, investors
“Too Big to Fail” banks enjoy lower funding costs despite stronger regulations
Implicit subsidies for large systemic banks has come down since the crisis but it is still higher than before, reflecting an ongoing perception of government support for the largest banks. While
Starbucks’ new European HQ sign of ‘tax posturing’?
Tax mitigation strategies are here to stay and so is public disdain for them, leading multinationals to start ‘tax posturing’. Starbucks is the latest example. On the surface, the announcement
FATCA a big leap in tax enforcement
The US pushes to strengthen tax enforcement with an act set to come into force this July. The benefits are clear, but it remains to be seen how the costs of the
China’s internet banking faces tightened regulations
China’s central bank is considering regulations that would curb the development of China’s internet banking innovation. Facing rising domestic financial risks, Chinese policy makers seem to be liberalizing the financial
Book Review: Currency Wars
In his 2011 book Currency Wars: The Making of the Next Global Crisis, James Rickards explains that we are in the third reincarnation of currency wars. He highlights the fact that
Financial firms still overexposed to climate risk
A report released earlier in March stressed the need to address high carbon risk in financial firms’ assets. Large institutional investors continue have continued to divest from fossil fuel stocks. A
