External debt (also called “foreign debt”) is the portion of total country debt that is owed to creditors outside of the country. The debtors can be the government, corporations or private households. The creditors include private commercial banks, other governments and international financial institutions (such as the IMF and the World Bank).
Capital Markets | Remedial Measures
The European Commission cites four concrete steps for kick-starting the Capital Market Union
Global Finance interviews senior executives from some of the banks featured in this year’s World’s Safest Banks rankings.
According to the International Swaps and Derivatives Association (ISDA), a derivative is a risk transfer agreement, the value of which is derived from the value of an underlying asset. More simply, a derivative is a contract between two parties where one party agrees to take on the risk of losses associated with a particular asset—such as a physical commodity or an agreed amount of currency.
At this point, it’s pretty much assumed that hackers are going to break into corporate computer networks. Global Finance talked with Michael Morris, chief Technology Officer of root9B, which offers cybersecurity services to corporate and government entities, about the war on digital attackers—and how businesses can retake some ground.
BBVA’s President and COO Carlo Torres Villa on the explosive growth of online banking and mobile banking.
Cover Story | Supplement
As data sharing becomes more common, individual privacy seems to be more luxury than norm. But corporations working with big-data analytics must pay attention to how many personal details they gather about their customers, lest they cross the invisible line of what is acceptable and what is not—and anger their client base.
The annual meetings of the International Monetary Fund and World Bank in Lima, Peru, in October, will provide world leaders with the right stage to discuss poverty and inequality and suggest ways for Latin American economies to foster growth less dependent on commodities, according to former president of Peru, Alejandro Toledo.
Banking | Europe
In its first round of QE, the ECB said that the bonds of only seven European financial institutions were eligible—until further revision, which won’t happen until at least April 15.
Trends | Global Banking
On the surface at least, Spain’s Banco Santander and Cloud storage providers do not appear to have much in common.
Trends | Bank Capitalization
As Spaniards returned from the Los Reyes Magos (Epiphany) holiday, Spain’s Santander, Europe’s biggest bank, sold the equivalent of nearly 10% of its capital in one day, raising €7.5 billion ($8.7 billion) in cash and bringing required ratios in line with those of the banking industry.
Vatican | Newsmakers
René Brülhart, known as the “James Bond of the financial world” for his high-profile role in cases such as the return of assets from Saddam Hussein to post-war Iraq and the uncovering of the Siemens bribery scandal, has become chairman of the Vatican’s anti-money-laundering unit.
A Sovereign Wealth Fund is a state-owned investment fund comprising financial assets such as stocks, bonds, real estate or other instruments and funded by foreign exchange assets.