The Banker

🍂 The US election victory of Donald Trump poses a significant challenge for corporate sustainability officers, writes Jill Ridley-Smith. 💸 With “Trumponomics” encouraging short-term profit over long-term responsibility, CSOs may face stronger resistance to embedding sustainability into strategy. ✨ Yet resilience and optimism remain core to CSOs’ work. Identifying ESG drivers that align with profitability, navigating evolving global regulations and leveraging supply chain requirements will be key tools in keeping sustainability on track amid shifting priorities. 🤝 Collaboration with landlords, external partners and ESG-conscious investors offers a path forward. While the outlook may seem bleak, CSOs have the skills to mediate polarised views and adapt arguments to achieve progress. Their tenacity will be tested, but their role remains indispensable in ensuring corporate resilience. Read more here: https://lnkd.in/eQrW8bgN

📈 BBVA CEO Onur Genç highlights the bank’s need for scale to sustain its digital transformation, as 67% of customer acquisitions now occur online. With technology costs rising to 30% of BBVA Spain’s total, the takeover bid for Sabadell aims to dilute fixed costs and boost profitability. ❌ However, the bid faces opposition from some shareholders and the Spanish government over competition concerns. Genç also stresses the importance of strong European banks to match the scale of US lenders, which dominate global rankings. 📊 Speaking at the FT and The Banker’s Global Banking Summit, he shared insights on the bid’s challenges, Spain’s bank tax, and BBVA’s strategic focus, including its growth in Mexico and digital expansion into markets like Italy and Germany. Read more here: https://lnkd.in/ecHwuBCv

🪙 As the US shifts its regulatory stance on digital assets under the incoming Trump administration, major banks may soon expand into crypto custody services. The appointment of crypto advocates Paul Atkins (SEC) and David Sacks (AI and cryptocurrency lead) signals a potential repeal of SAB 121, which has deterred banks from offering such services. 🏦 BNY Mellon, already leading with crypto custody and partnerships, has positioned itself ahead of this trend, managing nearly $18.2bn in bitcoin and ether spot funds. Meanwhile, other large lenders, including Goldman Sachs, remain cautious, awaiting clearer regulatory frameworks. 🌐 With regulation poised to evolve in the next 18 months, US banks may move closer to deeper digital asset integration, from custody to acquisitions of crypto firms. Are we witnessing a pivotal moment for institutional crypto adoption? Read more here: https://lnkd.in/e248QgJJ With comment from Andrew O'Neill, Caroline Butler and Martin Hargreaves Aliya Shibli reports

🌱 2024 has been a pivotal year for climate action in banking. Despite record-breaking temperatures surpassing the 1.5C threshold, some banks are pulling back from climate commitments. 💨 Goldman Sachs’ high-profile exit from the Net Zero Banking Alliance and Morgan Stanley’s adjustment of interim targets signal a shift in priorities, especially in light of anticipated political changes in the US. 🍃 Critics call this a “wave of backsliding”, jeopardising global climate targets. Meanwhile, European banks continue to advance policies, though concerns grow over balancing climate ambitions with competitiveness. ❓The question remains: how can banks drive the green transition in an increasingly complex political and economic landscape? Read more here: https://lnkd.in/dB8bxPEe With comment from Michael Mann, Sonja Gibbs, and Jeanne Martin Anita Hawser reports

🌍 January will mark three years since the Pan-African Payment and Settlement System launched to revolutionise cross-border payments across Africa. By reducing reliance on third-party currencies and cutting $5bn in annual conversion costs, PAPSS is driving financial integration and boosting intra-African trade. 🔗 With agreements in place with 15 central banks and 150+ commercial banks onboarded, PAPSS enables seamless transactions between markets like Ghana, Nigeria, Zambia and Zimbabwe. 🚀 Afreximbank’s complementary currency exchange pilot is another milestone, helping corporates like Dangote Cement and Ethiopian Airlines repatriate funds efficiently without intermediary currencies. These initiatives are paving the way for enhanced economic co-operation across Africa. Read more here: https://lnkd.in/eZY56upt John Everington reports

🇺🇸 The US banking industry may soon face fewer enforcement actions as the incoming Trump administration looks to reshape regulatory leadership and recent Supreme Court rulings curb financial watchdogs’ powers. 🚨 This comes after severe enforcement actions against US banks hit a seven-year high in 2023, following the collapse of Silicon Valley Bank and other lenders. Experts suggest a more business-friendly regulatory approach, coupled with legal decisions like SEC vs Jarkesy, will shift the enforcement landscape. 🤝 Partnerships between banks and fintechs may also receive less scrutiny, offering relief to smaller banks heavily targeted in recent years. However, areas like AI adoption and cybersecurity will remain under the microscope as regulators address emerging risks. Change may be slow, but shifts are underway. Read more here: https://lnkd.in/eQR4BzND With comment from Karen Solomon, Joel Cohen, Samantha Kirby, Allison Schoenthal, Eric Mogilnicki and Brad Bondi Barbara Pianese reports

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🇪🇺 The European banking sector is entering a new era of consolidation, led by UniCredit’s bold moves under Andrea Orcel. His bids for Commerzbank and Banco BPM challenge the status quo and have unsettled key players favouring organic growth. 📊 With higher rates boosting capital buffers, banks now have the funds to scale, diversify revenues and pursue cost synergies. 2024 has been a record year for M&A in Europe, and experts expect the trend to accelerate as the ECB cuts rates. However, political resistance, regulatory hurdles and market dynamics could reshape the landscape. 🌍 From Italy’s fragmented banking system to Spain’s high-stakes BBVA-Sabadell bid, and opportunities in Germany, CEE and beyond, where will the next wave of deals unfold? Read more here: https://lnkd.in/ef5FKFAw With comment from Alessandro Boratti, Miguel Raminhos, Giles Edwards, Johann Scholtz, Filippo Alloatti, Pablo Diaz Gridilla, Nicolas Charnay and Marco Zingler Anita Hawser reports

"The most digitally effective bank of the future": Aimen Kallala, Assistant General Manager and Head of Strategy & Analytics at Commercial Bank of Qatar, discusses some of the biggest technological opportunities for the banking sector. https://lnkd.in/e2_FgC8S Partner Content by Commercial Bank #Qatar #banking #technology

🇺🇸 Donald Trump’s re-election has sparked optimism in investment banking, with leaders predicting deregulation and tax cuts will drive deal volumes. Gary Goldstein of Whitney Partners is “excited” about a lighter regulatory touch freeing capital for high-margin activities. 📊 Anton Sahazizian of Moelis & Company describes a “light switch” effect post-election, while UBS’s Richard Casavechia cautions that the ideal deal window may narrow by late 2025 due to tariffs and geopolitical risks. ⚖️ Courts’ shifting stance on antitrust remains a wildcard, particularly for large deals. JPMorgan’s Jay Hoffmann anticipates consolidation in energy and finance but warns scrutiny will persist in healthcare and tech. Read more here: https://lnkd.in/enrcn7En Michael (Miša) Klimeš reports