Where does Libor live in a bank? Why are banks in Asia not looking at Libor transition seriously? Which bank is racing ahead? It’s been an interesting couple of weeks for Libor transition watchers.
Letters of credit may be a necessary evil that prolongs the trade process, but financial regulators in the two cities are pushing blockchain as a way to solve an old problem.
From crude solutions such as extending payment terms to complex arrangements such as supply chain finance, treasurers must keep all plates spinning in working capital management.
Transitioning onto the nation’s electronic system can save treasurers in China from a massive paper hunt, but the banking industry needs to be ready first.
HSBC’s strategic push to Asia promises explicit investment in transaction banking platforms and lending rates set to undercut existing lenders*, but the shift will be far less substantial than presumed.