The Banker

How can banks balance innovation and regulation in the GenAI era? Tara Brady, President, EMEA at Google, will address this at the Global Banking Summit next week on the 3-4 December in London. Tara’s panel will explore how organisations can be bold and responsible, and global differences in perspectives. Join this essential discussion—register now: https://bit.ly/3VhKqSP #FTBanking

🇮🇩 Indonesia is aiming for net zero by 2060 but faces a monumental challenge: attracting $2.4tn in investment to achieve this goal. Key priorities include adding 100GW of new power capacity, 70,000km of green energy transmission lines and advancing downstream industries. ⚡ Darmawan Prasodjo of PLN emphasised at this week’s Indonesia Investment Summit that transmission is critical to bridging resource-demand gaps. Meanwhile, François de Maricourt of HSBC Indonesia highlighted the vital role banks can play beyond funding — shaping policy, developing blended finance and introducing best practices. 🔋 With $30bn in projected investments for metals processing for battery and EV production in the next five years, Indonesia offers immense opportunities. But improving ease of doing business and creating a favourable investment climate are essential steps forward. Read more here: https://lnkd.in/eb-jqxeJ Kimberley Long reports

📢 The FCA has revised its “name and shame” proposals following backlash from MPs and city leaders. Adjustments include an increase from one to 10 days’ notice for companies before any public announcements and a refined public interest test to assess potential harm. 🕵️ The initial proposals, intended to boost transparency and accountability, faced criticism for risking reputational damage to firms under investigation. Critics argued this approach undermined the presumption of innocence, with 65% of FCA cases historically resulting in no further action. ⚖️ The FCA aims to strike a balance, ensuring consumer protection while addressing industry concerns. As FCA chief Nikhil Rathi acknowledged, there were “things we could have done differently”. A final decision is expected in early 2025. Read more here: https://lnkd.in/eWxJpAvF Sally H. reports

🏦 Just 33% of large US banks achieved “satisfactory” ratings across all categories in the Fed’s latest Supervision and Regulation report — a notable drop from 55% in 2020. Governance concerns, including issues like cybersecurity and operational resilience, remain key challenges. ️💼 The report highlights that while most large banks perform well on capital and liquidity, governance deficiencies account for two-thirds of supervisory findings. This underscores the growing scrutiny on controls and risk management frameworks. 📣 The Bank Policy Institute has called for clearer governance standards, criticising what it sees as “micromanagement” by supervisors. Despite these challenges, the Fed reaffirmed the overall resilience of the banking system. Read more here: https://lnkd.in/eqsmFE9Y Barbara Pianese reports

💷 UK regulators are proposing relaxed rules on senior banker bonuses to boost the financial sector’s competitiveness. Key changes include reducing bonus deferral periods and enabling earlier payments. But will these reforms attract top global talent? 🤔 Experts highlight mixed reactions. Daniel Parker of Forsters notes that while the proposals align with regulators’ new competitiveness goals, their impact on hiring trends may take time to materialise. Meanwhile, Michael Field, CFA of Morningstar warns UK banks may still face structural disadvantages compared to US peers, where such practices are voluntary. 🔍 The consultation raises broader questions about balancing competitiveness with accountability. Could these changes unintentionally reverse post-2008 reforms aimed at discouraging risk-taking behaviour? Read more here: https://lnkd.in/eZ4f42PV Michael (Miša) Klimeš reports

Tulip Siddiq, Economic Secretary to the Treasury and City Minister, joins us this December at the Global Banking Summit! Gain insights into the latest financial policies shaping the industry. Register now: https://bit.ly/3sGnvpp

🇪🇺 UniCredit’s surprise €10bn bid for Banco BPM could reshape Europe’s banking landscape. If completed, the merger would position UniCredit as the EU’s sixth-largest bank by Tier 1 capital, surpassing Société Générale and Deutsche Bank. 📈 Combining assets of $1.1tn (based on 2023 figures) would make the new entity the eighth-largest in the EU by total assets. It would also expand UniCredit’s loan market share in Italy from 9% to 15%, boosting revenues from its home market to over 50%. 💶 The deal reflects CEO Andrea Orcel’s strategy to consolidate in Italy amid stalled plans for a Commerzbank tie-up. Analysts suggest Banco BPM’s own strategic moves, including stakes in MPS and Anima, may have influenced UniCredit’s timing. Read more here: https://lnkd.in/eHn9dAsg Anita Hawser reports

🏴󠁧󠁢󠁳󠁣󠁴󠁿 Scotland’s financial hubs, Glasgow and Edinburgh, are at the heart of a quiet transformation in global banking. From Barclays’ £330mn Tradeston campus to JPMorgan’s state-of-the-art technology centre, global banks are “nearshoring” critical middle- and back-office roles to these cities. 🏢 Beyond their financial footprint, these centres are pioneering innovation — Barclays’ site uses net zero technology, and universities in both cities collaborate with banks to lead advancements in AI and fintech. Yet, skills shortages and competitive pressures could limit this growth. 👩💻 As financial institutions look to Scotland for its talent pool, fresh challenges — like immigration policies and tax disadvantages — must be addressed to realise the sector’s full potential as a global leader in technology and sustainable finance. With comment from Sandy Begbie, Scott Walker, Vida Rudkin and Mark Napier Read more here: https://lnkd.in/e7F65HXZ

The Dominican Republic’s economy is growing. Can it stay sustainable? This special report looks at banking performance and finds out how challenges like climate change are impacting finance. Read the full report: https://lnkd.in/e45Jpq9k Supported by Banreservas #sustainability #fintech #greenfinance #fdi #financialinclusion

The Global Banking Summit an event from FT Live in collaboration with The Banker is fast approaching. Secure your place: https://bit.ly/3Z2v4mc