Four banks in Bangladesh on the TABInsights Bank Watch List reported an average gross NPL ratio of 17.8% in FY2022, while Indian banks demonstrated improved asset quality, with none making the list, highlighting resilience to economic fluctuations

In 2023, China’s domestic systemically important banks grew to 20, led by China Merchants Bank in the TAB Global 1000 World’s Strongest Banks 2023 ranking, but some still require more capital despite improved capital ratios

The failure of Silicon Valley, Silvergate and Signature banks was caused by asset-liability mismatches, interest rate hikes and insufficient diversification, with many other US banks set to crack

The Asian Banker’s survey across financial institutions (FIs) in seven countries in Asia reveals emerging trends in cybersecurity risks and fraud, pressing challenges and technology areas prioritised.

The collapse of cryptocurrency giant FTX in late 2022 sent shockwaves throughout the crypto world. Previously valued at $32 billion, FTX filed for bankruptcy in November and its former chief executive officer Sam Bankman-Fried faces criminal charges. Countries around the world are expected to tighten regulations, leaving cryptocurrency platforms on shaky ground.

The total capitalisation of digital assets surged three-fold in 2021, with strong evidence that the momentum is likely to continue into the new year. DeFi users are expected to continue their exponential growth over the next 12 months, with more institutional investors moving into the space, combined with greater clarity over regulators’ stance in the large economies such as China and the US. What challenges and uncertainties could lie ahead to derail the upbeat outlook?

The push for climate change considerations puts pressure on financial services companies to develop and use advanced technologies such as blockchain that promises improved governance.

Fraud continues to be a key concern of financial institutions (FIs). The increasing cases of fraud underscore the need to focus on processes and technologies offering mitigation and prevention, as well as the priorities stressed by regulators. Meanwhile, there are persistent gaps in the FIs’ practices that need attention.

Recent cyber-crime trends show that criminals have been creative in exploiting emerging vulnerabilities and opportunities. To set up effective and resilient defence, banks need to build an integrated leadership driven cybersecurity hinged on technology, intelligence and collaboration.

The year 2020 ushered in a new era of operational change and disruption that will directly impact the regulatory response and business models of financial institutions for years to come.