Strategic Consultant
Expert perspectives for a rapidly evolving financial world.
Explore insights on banking operations, global finance trends, and breakthrough innovations in the financial sector. Designed for professionals who want to stay ahead of the curve in delivering value, efficiency, and sustainable growth.
Starting December 1, 2025, Iraq's Central Bank will mandate a Prior Declaration System for imports, enhancing financial transparency and combating fraud. The system links goods with financial transactions before currency transfers, improving customs revenues and modernizing trade. Importers must precisely document and coordinate with banks and customs to comply with new requirements.
The latest BIS International Banking Statistics reveal significant trends in global finance for Q1 2025. Cross-border bank credit reached a record $34.7 trillion, driven mainly by a 14% growth in lending to non-bank financial institutions (NBFIs). Emerging markets received $100 billion in new credit, reflecting investor confidence. Additionally, foreign currency credit grew, with notable increases in euro credit. Analysts should reassess risk models and monitor economic fundamentals and geopolitical factors for sustained growth.
The corporate lending and trade finance sectors are evolving due to digitalisation, AI, and global market dynamics, creating opportunities alongside challenges. Institutional investors and private credit funds are gaining prominence, requiring agility and transparency. Financial institutions must enhance digital services to meet client expectations while addressing a looming talent crisis as seasoned professionals retire. AI is transforming operations, and tokenisation may revolutionise trade finance, although standardisation hurdles exist. Adapting to these trends is essential for success.
In 432 BCE, tensions between Athens and Megara resulted in the Megarian Decree, an early economic sanction. Modern sanctions have evolved, exemplified by the U.S. and EU's financial restrictions on Russia after its 2022 invasion of Ukraine. AI is transforming compliance processes in the realm of sanctions, though human oversight remains essential. Financial institutions face both compliance challenges and legal risks, underscoring the need for meticulous records and adherence to regulations.
The recent insolvencies in the trade finance industry, notably the collapses of Stenn and Kimura, have raised serious concerns about the sector's inherent risks, including fraud and poor oversight. Stenn's downfall stemmed from allegations of money laundering, while Kimura's exit was strategic amid market pressures. These events, reminiscent of Greensill's 2021 failure, highlight the need for improved oversight and transparency to safeguard the industry’s future and prevent further crises.
In 2024, the Indian rupee depreciated by about 3%, highlighting a 20% decline over five years. Factors include a demand-supply mismatch, persistent current account deficit, higher inflation, slow GDP growth, and US interest rates. To stabilize the rupee, India must boost exports, attract investments, manage inflation, and strengthen production.
Open banking is revolutionizing finance by enhancing customer control over data and creating new revenue sources for banks. By sharing data through APIs, banks can personalize services, form partnerships, and innovate. Challenges include compliance and security. Success depends on embracing technology and customer-centric strategies to thrive in this evolving ecosystem.
The Reserve Bank of India has updated guidelines allowing account holders to nominate up to four individuals for their bank accounts. This change aims to enhance flexibility, minimize disputes, and empower individuals in financial planning. Digital access for updating nominees is also included, ensuring modern convenience.
Investigative agencies play a crucial role in addressing misconduct within the banking sector, yet face challenges in distinguishing between genuine errors and deliberate fraud. Overzealous investigations may deter honest officials and overlook fraudsters, highlighting the need for specialized training and collaboration with banking experts. A focus on systemic vulnerabilities is essential for enhancing financial integrity.
The Boston Tea Party in December 1773 exemplified the impact of supply chain disruptions, highlighting their role in historical movements and modern commerce. Today's global supply chains face challenges from pandemics, natural disasters, and cyberattacks. Emphasising resilience, businesses must diversify suppliers, optimise inventory, adopt technology, assess risks, and strengthen partnerships to navigate future uncertainties effectively.
Indrajit Roy Choudhury 