Global Banking Update: 27th September 2024

This past week has seen several notable developments in the global banking sector, reflecting shifts in regulation, resilience, and financial inclusion across various regions. Here is a summary of the key updates:

Basel Committee Finalises G-SIB Assessment and 2023 Turmoil Report

The Basel Committee on Banking Supervision approved its 2023 assessment of Global Systemically Important Banks (G-SIBs). This exercise is crucial for global financial stability, ensuring banks with the greatest potential impact on the system maintain prudent practices. Additionally, the committee finalised its report on lessons learned from the 2023 banking turmoil, with a focus on liquidity risk and supervisory effectiveness. These developments highlight the continued focus on improving oversight following recent market disruptions.

FDIC and OCC Finalise New Bank Merger Guidelines

The FDIC and OCC finalised their revised bank merger guidelines on 17th September. The new regulations place greater emphasis on financial stability, competitive effects, and anti-money laundering (AML) effectiveness. Notably, mergers involving institutions with over $100 billion in assets will be subject to additional scrutiny to safeguard against systemic risks. The guidelines also stress the importance of community impact, ensuring that mergers benefit local economies rather than diminish competition.

World Bank's Climate Finance Expansion

The World Bank announced a record $42.6 billion in climate finance for the fiscal year 2024, a 10% increase from the previous year. This funding supports global efforts to reduce poverty while addressing environmental challenges. The increase aligns with the growing focus on sustainability and the transition to cleaner energy, which is now a priority for banks globally. The institution’s commitment underscores the integral role of banks in funding projects that aim to build more resilient economies and societies.

SUNRATE and Citibank Collaboration to Enhance Thai Baht Trade:

SUNRATE, a global payment and treasury management platform, achieved a significant milestone this week by securing Non-Resident Qualified Company (NRQC) status through its partnership with Citibank Thailand. This development, facilitated by the Bank of Thailand's regulations, enables foreign enterprises to conduct Thai Baht transactions more efficiently. The partnership will offer faster foreign exchange settlements and improved local clearing services, particularly for businesses operating in Thailand's e-commerce and export sectors.

Global Poverty Estimates Revised by the World Bank

In its latest update, the World Bank revised its global poverty estimates for 2024. While extreme poverty is projected to decrease to 692 million people by the year’s end, the organisation also emphasised the challenges faced by lower-income countries due to inflationary pressures and other economic shocks. These estimates come amid ongoing efforts to increase financial inclusion and develop poverty alleviation strategies, with banks playing a key role in supporting these initiatives.

The global banking landscape continues to evolve, shaped by regulatory changes, technological advancements, and an increasing focus on sustainability and financial inclusion. As institutions adapt to new challenges, collaboration between regulators, banks, and other financial entities remains essential in promoting stability and growth.

For deeper insights into what these developments mean for bankers and to access strategic recommendations, visit the Global Banking Hub. Become a member at www.globalbankinghub.com to unlock the full report and exclusive content tailored for banking professionals.

References

Basel Committee. (2024). Basel Committee approves annual G-SIB assessment and advances follow-up response to 2023 banking turmoil. Available at: [BIS](https://www.bis.org/press/p240924.htm).

World Bank. (2024). Climate Finance Fiscal Year 2024 Snapshot. Available at: [World Bank](https://www.worldbank.org).

PwC. (2024). Our Take: financial services regulatory update – September 20, 2024. Available at: [PwC](https://www.pwc.com).

Malay Mail. (2024). SUNRATE Enables Onshore Thai Baht Trade Under the Bank of Thailand's NRQC Regulations. Available at: [Malay Mail](https://www.malaymail.com).

World Bank. (2024). September 2024 global poverty update. Available at: [World Bank Blogs](https://blogs.worldbank.org).