HUMAN RESOURCES | Performance appraisals drive everyone nuts, but many US companies are doing them more often.
Trends | Shadow Banking
Renaud Laplanche, Lending Club’s founder, chief executive and public face, resigned abruptly in mid-May. His resignation casts a pall over not only the peer-to-peer lender that claims to be the world’s largest online marketplace connecting borrowers and investors, but also the shadow banking industry as a whole.
Capital Markets | Cross-Border Payments
Forty-five international banks have teamed up with the financial messaging provider Society for Worldwide Interbank Financial Telecommunication (SWIFT) to launch an initiative aimed at making cross-border payments faster and more transparent.
Capital Markets | Debt Restructuring
Americans used to like Puerto Rico, a United States territory in the Caribbean, not only for its white, sandy beaches but also because of its high-yield, tax-free bonds.
Trends | Taxation
As part of a crackdown on generous tax incentives across the European Union, in January the European Commission (EC) demanded Belgium claw back €700 million ($762 million) in tax breaks from at least 35 European firms.
Management | Risk Management
Cyberattacks, safety concerns, climate change, regulatory demands, declining oil prices, less demand from China, a crumbling and volatile stock market: There is no lack of risks in doing business, and at the start of 2016, they are ever- present for corporations small and large.
Trends | Peace Deals
Low oil prices are widening Colombia’s current-account deficit, dampening the confidence of foreign investors and dragging down the economy.
Tom Manning, affiliate partner at Waterstone Management, has been advising global companies on China, and vice-versa, for years. The onetime CEO of Ernst & Young Consulting Asia, Capgemini Asia, Cerberus Asia and Indachin, and former senior partner at Bain, sat down with Global Finance to discuss the nation’s quiet innovation revolution.
Household saving is defined as the difference between a household’s disposable income (wages, income of the self-employed and net property income) and its consumption (expenditures on goods and services.)
According to the OECD, foreign exchange rate reserves are the stocks of foreign currency denominated assets plus gold, held by a central bank. More simply, they are the assets of the central bank held in currencies outside the home country currency.
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).
According to free-market economists, economic freedom is the key to prosperity and growth.
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.