Agenda: Day 1  | Day 2  |

The meltdown of the global economy, which left many US and European banks badly hurt, has highlighted more than ever the need for global best practices that truly balance productivity and profitability. Although caution may have kept many conservative Asian public-sector banks safe, the same trait has also severely crimped their productivity. By contrast, private-sector banks in general have been bolder, more efficient and comparatively more profitable. What are the parameters to determine efficiency in different types of banks: customer experience, attracting and keeping talent, leveraging information technology knowledge and capabilities, etc? How do emerging market and international banks fare on the efficiency barometer? What financial measures and regulations could be introduced to enhance efficiency?

Global economic volatility has produced sharp moves in the foreign exchange markets, sometimes accompanied by desperate policy measures to either reflate or deflate domestic economies. Some emerging market giants like Brazil have seen their currencies shoot up, undermining export competitiveness, while the Indian rupee remains pressured by a combination of weak growth and inflationary pressures. It remains to be seen to what extent the Chinese authorities will continue to loosen restrictions on the renminbi and how that will affect global trade. The outlook for interest rates also remains uncertain, with policy-makers having to choose between controlling inflation and reviving economic growth. This unstable environment is posing new challenges for banks and their corporate clients seeking to manage risk and find viable investment and commercial opportunities. How are banks assessing and pricing risk, and are they ensuring that corporations, whether big or small, are able to get funding for viable ventures? Are banks helping their clients effectively hedge currency and interest rate volatility? As corporations increasingly venture into new markets in search for growth, are banks equipped to support that expansion? In what areas do corporates feel that they need better support from their partner banks?

Globally, financial institutions and corporates are now looking beyond traditional models of CSR and philanthropy and integrating sustainability into core business models. How are they meeting these goals while ensuring profitability? How are banks and other financial institutions working with corporates to create viable financing models that absorb the risk of key environmental projects? What is the Indian experience of integrating sustainability into day-to-day decision-making?

Global banks, businesses and bourses usually set up in cities with important international financial markets and trade. As global demographics shift in the 21st Century - the birth rate is declining in Europe, Japan, and soon even China - so too will the patterns of capital investment and resource consumption. This should lead to the emergence of new financial hubs, including in India, which will jostle for prominence with the established financial centres. But before they can challenge the old guard, the newcomers will have to meet the requirements of their new international focus. They will need to ramp up in key areas: greater transparency in shareholder rights, enhanced standards of compliance and vigilance, and better technical connectivity, for example. Can they make the grade? Will the more established hubs continue to dominate? Or will emerging financial hubs simply gain a share of a growing global pie?

Regulatory reforms such as Basel III and the Dodd-Frank Act aim to dampen some of the risk-reward impulses within the banking industry that led to the financial crisis. Requirements for banks capital, liquidity and leverage are higher and tighter. Stronger rules on corporate governance, stress testing, risk management, proprietary trading and lending practices are other priorities. But the financial safety that these tougher measures are designed to bring may come at a price. At a time when investment is sorely needed, will risk-averse investors hold back, intimidated by narrow returns? Will the smaller banks be squeezed out, and the bigger banks see greater pressure on margins? Will the cost and consequences of stronger compliance and stricter regulations hamper a global economic recovery? How are central banks and other agencies managing to combine the dual mandates of regulating banks and keeping the financial system running? How prepared are they, for instance, to deal with the impact on the banking sector of eurozone sovereign defaults?