We are happy to present the March-June 2011 edition of Finesse, which is nearing its third year of publication.
The global financial industry has witnessed many surprises during the period, with US banks posting record profits since the onset of the financial crisis. Banks operating in several other geographies around the world have also witnessed strong profits.
Europe continues to be in the limelight due to the regulatory measures being considered by the EU. The UK’s Independent Commission on Banking has recommended that financial services companies, which offer retail and investment banking services, maintain a separate capital base for each business line.
Positive regulatory activity has also been witnessed in India.
The Reserve Bank of India (RBI) has proposed a holding company structure for banks and non-banking financial companies (NBFCs), which should make it easy for these organizations to raise capital for their new financial activities. Furthermore, the RBI has set the ball rolling for deregulation of interest rates on savings accounts by releasing a discussion paper on the subject.
We invite you to read about these developments in the Industry review section of this newsletter.
Our In Focus section brings to the fore the key issues facing the financial services today, through insightful articles contributed by EY professionals.
The article Fraud transaction monitoring — the need of the hour highlights the alarming increase in bank-related fraud and the challenges banks need to address to prevent them.
Another article, Subsidiarization of foreign banks — tax issues, will bring to your notice tax-related issues that can potentially arise from the proposals put forward by the RBI in its recent discussion paper on the presence of foreign banks in India.
The News section will update you on the key developments that have taken place in the global and Indian financial services sector.
Deal monitor captures the major transactions of Indian financial services companies.
The Market monitor section concludes the newsletter by looking at the performance of the Indian financial services industry from the viewpoint of stock markets.
We hope you enjoy reading this edition of Finesse!
Hiresh Wadhwani and Viren H. Mehta