As Brussels pushes ahead with a new wave of enlargement, the numbers behind Europe’s trade with its candidate countries reveal a story of dependence, asymmetry, but also a large, untapped potential.
The official EU candidates are Albania, Bosnia and Herzegovina, Moldova, Montenegro, North Macedonia, Serbia, Turkey, and Ukraine. Kosovo is treated as a potential candidate.
Together, they cover a diverse sweep of geography from long Adriatic coastlines to lush forests and some of Europe’s most productive farmland — also including some of Europe’s youngest populations.
But while trade flows between the bloc and future members are booming, the relationship remains unequal, with more EU-produced goods finding a market than those stemming from potential member states.
A relationship measured in billions
According to the European Commission’s 2025 Western Balkans trade factsheet, total trade in goods between the EU and the six Western Balkan partners reached €83.6 billion in 2024, up 28.6% since 2021.
Exports from the EU to the region stood at €49.06bn, while imports from the Western Balkans came to €34.52bn, leaving Brussels with a €14.54bn trade surplus.
The EU’s dominance as a market is overwhelming. It accounts for around 62% of all Western Balkan trade, whereas the region represents barely 1.7% of the EU’s external trade.
For Serbia, Bosnia and Herzegovina, and Albania, between two-thirds and three-quarters of all exports go to EU countries.
“All (candidate) countries, with the curious exception of North Macedonia, have persistent trade deficits with the EU, meaning they import more from the EU than they export there,” explained Branimir Jovanović, an expert with The Vienna Institute for International Economic Studies (WIIW).
“These are economies with small productive sectors. They do not produce enough of what they need, so they have to import, and they also do not produce enough to export,” Jovanović continued.
Over the past decade, North Macedonia has become a production base for components that go straight into EU industry that qualify for preferential access to the EU market under the Stabilisation and Association framework (SAA).
The result is that North Macedonia can sell a relatively high share of what it makes directly into the EU without being blocked by technical standards.
This is very different from, say, Albania, which leans more on raw materials and low-value textiles, or Montenegro, which is tourism-heavy and import-dependent in goods.
It is also different from Bosnia and Herzegovina and Serbia, which still import a lot of higher-value machinery from the EU and then export a more mixed, lower-value basket back.
Ukraine and Moldova import high-value EU machinery, vehicles and industrial equipment, while exporting mainly lower-margin goods. In essence, they supply raw materials and basic products, and the EU supplies the technology to produce them.
Barriers to trade
The Western Balkans trade with the EU under SAAs, which gradually remove tariffs and align national laws with EU rules as part of the formal accession process. By contrast, Ukraine and Moldova operate under Deep and Comprehensive Free Trade Areas (DCFTAs), broader deals that open large parts of the EU single market in exchange for adopting much of the EU’s regulatory framework.
In essence, SAAs are a pathway to membership, while DCFTAs offer deep EU market integration without full membership. This distinction has, however, become blurred — with Brussels indicating that it believes in full membership for Ukraine and Moldova after the full-scale invasion of Ukraine in 2022.
“Countries exporting to the EU face many barriers aside from tariffs. Economists call these technical barriers to trade, such as phytosanitary standards,” Jovanović explained.
So even if they produce something that there is a demand for in the EU, it never reaches those markets because these companies might not have the necessary certificates.
“So, although unemployment has decreased, there is no real progress in development. There is also a real risk of a middle-income trap, in the sense that these economies remain assembly-line economies, with low wages and limited technological development and innovation.”
The same debate now extends to Ukraine, which formally opened EU accession talks in 2024. Despite the war, trade between the EU and Ukraine has surged. Eurostat data shows the bloc exported €42.8bn worth of goods to Ukraine in 2024 and imported €24.5bn, yielding a €18.3bn surplus for the EU.
The composition of that trade has shifted dramatically since the Russian invasion. Agricultural commodities still dominate Ukrainian exports such but the EU has become its conduit for reconstruction materials and machinery.
Neighbouring Moldova, another candidate country since 2023, shows similar patterns. The EU is Moldova’s biggest trading partner, accounting for 54% of its total trade in goods in 2024. Some 65.6% of Moldovan exports head to the EU.
Trade turnover reached about €7.5bn last year, with EU exports to Moldova amounting to €5.1bn and imports to €2.4bn.
EU standards, a distant dream?
The Western Balkans have made solid progress since the early 2000s, but full convergence with the European Union remains a distant goal, warned the OECD’s Economic Convergence Scoreboard for 2025.
The six economies have more than doubled their output in two decades — yet the region still only reaches about 40% of the EU average. At current growth rates, full convergence won’t arrive until 2074.
The region’s output per person (in purchasing-power parity terms) has more than doubled in 20 years, showing real improvement in productivity, investment, and living standards.
That means the Western Balkans are closing the gap, but painfully slowly, and the strong growth rates are offset by the much higher productivity and capital stock inside the EU.
Growth, on its own, is not enough for convergence. The Western Balkans need qualitatively different growth which is driven by innovation, skills, and higher-value industries.
Infrastructure and productivity are the region’s weakest links.
According to the OECD report: “The insufficient quality and coverage of core public transport infrastructure can be a significant obstacle to higher economic growth…as inadequate transport networks can severely constrain the connectivity of producers and consumers to global and regional markets.”
With regard to Ukraine, its economy has adapted after a historic shock, but the damage is staggering. Much of the population has been displaced and large swathes of infrastructure have been destroyed.
Output fell –28.8% in 2022 and rebounded +5.5% in 2023. Public finances are being stretched to the limit by defence needs, hindering convergence with EU member states.
Foreign investment: Friend or foe?
Foreign direct investment (FDI) brings factories and jobs to candidate countries, as well as building stronger links with existing EU member states. Even so, Jovanović argued that this has not led to “structural transformation” in the candidate nations.
The pattern is visible, for example, in Serbia — where car plants are boosting employment but the country is still importing high-tech machinery.
When FDI concentrates in lower-value stages of production and local supplier bases remain thin, wage gains are limited and more value is captured abroad.
“There is a duality in how FDI is perceived: politicians still see it as the key — sometimes even the only way — to develop the economy, while people are increasingly seeing it as a vicious circle,” said Jovanović.
“Hence, a change in the economic model is long overdue — with a more selective approach towards FDI, focusing on high-quality and high-tech investment and a greater focus on domestic companies through industrial and innovation policies,” Jovanović added.
The argument is clear: while FDI raises employment and links these economies to EU markets, it becomes transformative only when it upgrades the local production base.
Otherwise, candidate countries risk remaining an assembly platform rather than a full partner in Europe’s value chains.
A test of Europe’s promise
In the end, the numbers tell both a success story and a warning. They show integration without transformation: Exports are up, factories are open, but productivity and infrastructure still lag.
The next phase will need to hinge on quality, not just quantity, say experts. This means selective FDI that upgrades supply chains, targeted single-market access tied to reforms, and faster investment in skills, energy, and transport.
If Brussels and the candidates can shift from assembly to innovation, the gap can narrow within a generation. If not, the candidate countries risk remaining a dependable workshop rather than a prosperous partner.
Deindustrialization and recommodification have been setting Latin American economies back for decades. Can a push for greater productivity put them on track again?
In the 10 years from 2014 to 2023, Latin America’s aggregate economy managed to quietly reach depths unknown even during the dismal Lost Decade that followed the onset of the region’s debt crisis in 1982. The recent period logged average annual growth rates of 0.9%, compared to 2% a year four decades ago, notes Marco Llinás, head of Production, Productivity and Management Division at the Economic Commission for Latin America and the Caribbean (ECLAC), a UN agency based in Santiago, Chile.
The Covid-19 pandemic made a dent, but two parallel trends contributed steadily throughout the period: deindustrialization and the recommodification of exports. Their origins predate 2014, and they can be observed across the region, with perhaps the exception of Mexico.
Future economic historians may wonder why nobody saw it coming, although contemporary analysts still disagree about the relative importance of the two elements. “The phenomenon of deindustrialization is not the same as recommodification,” says Llinás. “The two phenomena may or may not happen at the same time.”
Both continue to play out amid a confluence of factors: the decline and fall of globalization, China’s growing role in the region, and the Trump tariffs, to mention just a few. But how did it start?
Economists of all ideological stripes tend to agree on the steps that have traditionally facilitated the march from underdeveloped to developed. Nations begin with low value-added production and basic services. Then comes industrial development and the emergence of a working middle class. Ultimately, services prevail, often high-end ones fueled by technology. Think of South Korea. In the 1950s, it made headlines for battles in the Korean War over uninhabited strategic landmarks like Pork Chop Hill. Now, it is known as the home of Blackpink.
Until the debt crisis of the 1980s, Latin America seemed to be holding its own. Its aggregate growth rate was 5.2% per year (6.8% in powerhouse Brazil) from 1951 to 1980, ahead of the world (4.5%) and not much shy of Korea (7.5%) and Japan (7.9%), according to a 2004 paper by the Inter-American Development Bank. Using a narrow definition of manufactures, Brazil more than doubled the share of industrial exports in GDP from 10.8% in 1968 to 23% in 1973, fueled by industrial growth of 13.3% a year during that brief period known as the Brazilian Miracle.
From 1981 to 1993, saddled with the debt crisis and its aftershocks, the region stumbled behind with 1.7% annual growth while Korea continued to sprint ahead at 7.2%. As globalization began to help lift parts of the world out of poverty—albeit unequally—in the 1990s, Latin America mostly watched from the sidelines: either by choice, preferring relative isolation, or due to lack of competitiveness.
Premature Deindustrialization
“Premature deindustrialization” is the term economists use to describe a shift away from manufacturing before the economy in question has attained a robust level of industrial production. It happens at income levels lower than today’s richest nations have historically reached. The latter are sometimes called “post-industrial” societies, characterized by high-end, technologically enhanced service sectors.
Premature deindustrialization has also occurred in sub-Saharan Africa and parts of East Asia. But it’s especially striking in Latin America, given the very different trajectory its economies were on prior to the 1980s.
“Argentina’s manufacturing subsystem shows a clear shift toward low-tech employment, with an increasing dominance of low- and medium-low-tech industries, undermining the potential for higher-value-added manufacturing,” Martin Lábaj and Erika Majzlíková of the Bratislava University of Economics and Business write in a recent paper. Brazil “faces the most severe deindustrialization, characterized by a growing reliance on low-tech manufacturing and low-knowledge-intensive services, exacerbating its economic challenges.”
The contribution of manufacturing industries to Brazilian GDP fell from 36% in 1985 to just 11% in 2023, according to official statistics. “Why is it a problem?” Llinás asks. “Because industry has higher productivity and faster productivity growth. Plus, greater potential for expansion.”
Multiple factors cause premature deindustrialization, economists say: globalization; automation, stunting job growth; shrinking global demand for products.
They also point to a litany of “structural factors” that run from resource dependence to weak institutions; and policies that stunt investment such as high taxes, red tape, poor infrastructure, and cumbersome labor laws. “The country is very closed,” says Sérgio Goldman, a São Paulo-based corporate finance consultant, referring to his native Brazil.
Imports began to grow—from $60.4 billion in 1990 to $359.4 billion in 2000, according to World Bank statistics. A dominant traditional trade partner increased its exports of manufactured products to the region. Indeed, evidence of the political nature of Trump’s 50% tariff on Brazil included the fact that the US had a trade surplus with that country.
More recently, observers highlight closer trade ties with China and a subsequent influx of cheap manufactured goods, sometimes sending local producers reeling. “The auto parts sector in Colombia was really hurt by Chinese competition,” says William Maloney, chief economist for the Latin America and Caribbean region at the World Bank Group.
Given many countries’ history of protectionism, innovation is not top-ofmind among Latin American executives, according to Goldman. “My problem is with management,” he says. “Companies lack good managers.”
Whereas Japan parlayed its once abundant copper deposits into the establishment of leading global firms in the sector, Chile never seemed able to follow suit, Maloney notes: “In Chile, only a few firms are near the technological frontier.”
But is deindustrialization due primarily to “automation, trade, robots, or the China shock?” he asks. “It isn’t exactly clear.”
Recommodification
The second significant trend is “recommodification,” or the “reprimarization” of exports.
Thought to be emerging from commodity dependence during the last century, Latin America fell back on churning out greater volumes of raw materials during the commodity boom of the 2000s.
Driven by demand from China, but also India and other fast-growing economies, a 2000-2014 super cycle was followed by a second surge at the beginning of this decade. Each wave tends to leave export volumes at higher baselines; Brazilian soybean exports keep setting records, for example.
Commodities as a percentage of total exports in 2000 vs. 2020 jumped from 41.1% to 55.6% in Brazil, 63.1% to 83.2% in Chile, 55.6% to 65.1% in Colombia, and 73.2% to 85.3% in Peru, according to data provider Trading Economics.
Comparing 2024 to 2023, “agricultural products (11%) and mining and oil (11%) were the main contributors to growth in goods exports, while manufacturing exports remained stagnant,” ECLAC reports.
“Productivity Is Everything”
Pundits and policymakers are notoriously disputatious when it comes to Latin America; the region has dabbled for decades in everything from import substitution to the free market liberalism of the Milton Friedman-inspired Chicago Boys. Nowadays, however, they seem to be reaching a near consensus.
The post-2014 downturn “is in large part due to stagnant and even declining productivity,” posits Llinás. He adds, paraphrasing Nobel Prize-winning American economist Paul Krugman, “productivity isn’t everything, but in the long run it is everything.”
Four of the region’s leading economies—Brazil, Chile, Colombia, and Mexico—are implementing what Llinás calls “productive policies,” which he is careful to distinguish from old-school industrialization strategies. A common characteristic: the selection of a handful of priority sectors, industrial or not. These may include agriculture, mining, or services such as sustainable tourism.
The Brazilan program, for example, earmarked R$300 billion for credit, public purchases, regulatory reform, and infrastructure investments designed to benefit six sectors during the initial 2024-2026 period.
Investment in commodities also has its champions, especially given the potential for innovative spin-offs. Efforts to improve business practices in sectors such as mining and agribusiness can spur investments related to industrial processes and highend services, for example, say Llinás and Kieran Gartlan, a São Paulo-based managing partner of The Yield Lab Latam, a venture capital fund focused on agrifood and climate technology. Gartlan refers to large-scale farms such as Brazilian soybean producers as “open air factories” and points to start-up suppliers that are developing new technologies in fintech, drones, biotechnology, and beyond. His firm has mapped some 3,000 high tech start-ups in the Latin American agricultural sector.
But credit availability is proving a roadblock.
Private banks “don’t really have an appetitive” for farming, Gartlan notes; lacking the expertise to properly evaluate risk, “they put up big spreads that make [credit] expensive for farmers.” Many relatively large producers fail to invest in silos to store crops for sale when prices go up, for example. Instead, they live from harvest to harvest, paying off last season’s bills as the crop comes in.
The will to transform Latin America’s economy—much of it—in a more productive direction is there; the next step is for investors and lenders to buy in.
Global Finance (GF): What are the highlights of your professional journey, and what was appealing about your move to Scotiabank?
Francisco Aristeguieta (FA): Before joining Scotiabank in April 2023 to lead the group’s International and Global Transaction Banking (IGTB) businesses, I was CEO for custody services at State Street. Prior to that, I spent 25 years at Citibank, where I held several senior leadership roles including CEO for Asia, overseeing retail bank operations in the Middle East, Eastern Europe, and the UK. Earlier at Citi, I was CEO for Latin America, and previously led transaction banking at Citi in the region.
After about 30 years as a global banker, joining Scotiabank was a natural progression in my career. The bank’s focus around innovation, client-centricity, and global connectivity, mandated by the newly appointed CEO, aligned with my professional values and aspirations. It’s exciting for a bank of this scale to take this approach, and it plays to my strengths and experience in managing change, building strong teams, and improving performance.
GF: What role does Global Transaction Banking play in Scotiabank’s global strategy?
FA: Global Transaction Banking (GTB) plays a transformational role in Scotiabank’s global strategy. It enables us to deliver the full force of our footprint across corporate, commercial, and SME clients—supporting their needs in managing payrolls, collecting payments, paying suppliers, transacting in multiple currencies, and creating capital efficiency in their supply chains.
As a growth engine and anchor for client primacy, we are embedding Scotiabank into the operational and financial lifeblood of our clients by providing a full suite of transaction solutions like cash management, trade finance, liquidity, and digital integration.
Companies seek straightforward onboarding, a seamless digital interface that feels as intuitive as consumer platforms, and attentive, personalized service at every stage. In response, we’ve enhanced the end-to-end journey:
Clients now benefit from the Treasury Management Sales Officer (TMO) model that offers a single global point of contact to guide them through their banking needs wherever they operate.
We have organized our product implementations and servicing team across our footprint to ensure that clients experience the same high standard of service, regardless of their location.
And ongoing technology upgrades enable an always-on digital experience for managing payroll, payments, and multi-currency transactions.
By bringing these elements together, GTB delivers Scotiabank’s extensive footprint and capabilities in a way that puts client needs at the center—making us a differentiated leader in Canada and an increasingly competitive partner internationally.
GF: With products and services spanning the Americas, Europe, and APAC, how do you take advantage of this unique footprint?
Francisco Aristeguieta, Group Head, International & Global Transaction Banking | Scotiabank
FA: We are leveraging the acquisitions we have historically made around the world by creating a connected network to become truly client centric, rather than product led. This involves using our footprint to create solutions and value propositions that are relevant to our clients, positioning us to become their primary banking partner.
Clients today expect a consistent digital experience wherever they operate. This includes having a single set of login credentials, the ability to view and take action on their cash positions across all markets, and straightforward access to products and services.
Driven by this evolution of client demands, we’re investing heavily in our digital platforms to ensure that, whether a client is in Canada, Mexico, the US, or further afield, they have a unified and intuitive experience. We do this by building a treasury platform that enables seamless connectivity, allowing clients to manage transactions and liquidity across borders with ease. Our platforms also provide data-driven insights, empowering clients to make informed decisions and optimise their cash flow. By integrating these capabilities, we’re not just connecting geographies—we’re connecting clients to the information and functionality they need to thrive globally.
GF: As businesses pursue cross-border opportunities across Canada, the US, and Mexico, how is Scotiabank supporting them in the current global trade environment?
FA: As the old playbook for global trade is being rewritten, our deep, hands-on knowledge of the markets in which we operate has never been more essential. This expertise—honed across Mexico, the US, and Canada—positions us uniquely to guide clients through today’s uncertainty. With around 10,000 employees in Mexico, where we are the fifth largest bank, and strong presence in the US and Canada, our understanding is comprehensive and current.
Our awareness of shifting trade dynamics, such as the growing significance of regional corridors and the rise of new partnerships, allows us to anticipate market needs and offer strategic advice. For example, the US–Canada–Mexico corridor alone accounts for more than US$1 trillion in annual cross-border trade, underscoring the increasing importance of interconnected regional markets.
As treasury teams face leaner structures and greater complexity—juggling technology, innovation, and risk management—our role as a bank is to act as a trusted advisor. We help clients navigate new markets, manage documentation, and simplify integration, deploying our balance sheet to support working capital and Capex financing, and optimizing treasury management for lasting resilience.
In a rapidly evolving environment, our market knowledge is the foundation for enabling clients to adapt, thrive, and seize opportunity amidst uncertainty.
GF: What is your perspective on Scotiabank’s GTB role as a connector of global capital and trade between Europe, APAC, and the Americas?
FA: Europe–particularly Spain–is a key investor in Latin America and the US. We also have a lot of clients from the UK, France, and Italy. In addition to our traditional role of financing these investments, we provide offshore CAD cash management and trade finance.
We also have presence in Asia. A lot of sovereign wealth funds and Asian companies are investing in Canada, Latin America, Mexico, and the US, so we can connect these flows.
Another example is our recent partnership with Davivienda, one of the largest banks in Colombia, which will enable us to participate in a business with greater scale and to provide clients with cash management services across its footprint.
Scotiabank’s commitment to the North America corridor, combined with our retail, commercial, and corporate banking strategy deployed at scale across our markets, positions us as a leading partner for globally connected businesses seeking a seamless treasury experience.
GF: How do you envisage the next stage of Scotiabank’s GTB transformation?
FA: Moving forward, our priority will be to keep the client experience front and center as we invest in our team and build an integrated vision to drive the next stage of GTB’s transformation. In everything we do, we’re looking to make transaction banking simpler, faster, and more transparent.
Technology will be an important part of this plan as it continues to disrupt traditional cash management services. For example, a major focus of our strategy is the rollout of ScotiaConnect, our advanced digital banking portal now live in Colombia, Mexico, and in the US, with expansion planned across markets. ScotiaConnect delivers secure, single sign-on access for treasurers and CFOs, enabling real-time balance and transaction reporting.
Another key upcoming initiative is the enhancement of our cash management capabilities in the US, which allows us to transition from transactional deposit relationships to deeper, day-to-day cash management partnerships, ultimately increasing client primacy. With this launch, we are excited to service US-based needs of our clients. To address this significant opportunity, we have developed a robust roadmap of new capabilities and are committed to continued investment into 2026. We will be closely tracking adoption to ensure we are effectively meeting our client’s evolving needs and maximizing our impact on this market.
Some of Latin America’s smaller nations are stealing the limelight as US tariffs bring economic headwinds to the region.
Some of Latin America’s smaller states are flipping the script on their larger rivals. Guatemala, Jamaica, and Barbados have all received credit rating upgrades this year and their economies have been bolstered by strong remittance growth and stable labor markets. Meanwhile, traditional stalwarts Brazil, Colombia, and Mexico grapple with uncertainty.
Brazil faces the twin threats of 50% tariffs, courtesy of US President Donald Trump, and the ongoing trial of former President Jair Bolsonaro, which has caught the attention of his friend in Washington. This has the potential to cause further difficulties for incumbent president Luiz Inácio Lula da Silva, but at the same time could revive his stuttering campaign for re-election.
In Colombia, a series of reforms aimed at boosting the rural economy has locked President Gustavo Petro in a series of battles. Attempts to force through reforms that would affect rural areas, including redistributing 570,000 hectares of land and recovering occupied areas linked to paramilitary leaders has seen Petro fight with Colombia’s congress, mayors and even infighting in his own party. Most recently this has been with mayors over a trip to Washington to discuss the war on drugs, with Petro arguing the group of local officials could not represent the country.
Mexico looks to narrowly avoid recession in 2025 as the World Bank estimates 0.2% growth for the year. President Claudia Sheinbaum has taken a conciliatory approach in dealings with the mercurial Trump, giving her government more time to sort out domestic issues including Pemex’s debt restructuring and reform of the judicial sector.
Todd Martinez, senior director and cohead of the Americas for Fitch Ratings
All this leaves some observers viewing the glass as half full, at least.
“Though we’ve revised down our projections for US growth quite a bit since the start of the year, our projection for Latin America has stayed stable,” says Todd Martinez, senior director and cohead of the Americas for Fitch Ratings’ sovereigns group. “That’s noteworthy, and signals that we’ve come a long way from the ‘When the US sneezes, Latin America catches a cold’ thesis that used to prevail in economic analysis of the region.”
Latin America is not homogenous, Martinez points out. Brazil and Mexico’s economies are slowing down after years of quality growth, with forecasts pointing downward for Mexico in particular. This has given a set of countries whose sovereign debt is categorized as “low-beta credit with defensive qualities,” by Wall Street experts including Barbados, Bahamas, Guatemala, Jamaica, and Paraguay, a chance to shine.
The catalyst is the mixture of a weakening US dollar and commodity prices that remain high, especially for metals. Remittances to the region, especially the Northern Triangle of El Salvador, Guatemala, and Honduras, have shown growth up to 20%. Combined with methods that Latin American central banks honed during the pandemic to keep inflation under control and labor markets resilient, Latin American sovereign debt is being viewed positively.
Upgrades For Outliers
Guatemala was confirmed as BB by Fitch in February with its Long-Term Issuer Default Rating (IDR) Outlook improving from stable to positive and by Standard & Poor’s to BB+ in May. The state’s debt to GDP ratio has traditionally been small for the region, a result of its having not missed repayments since the 1980s combined with a lack of political will to take on too much debt. Debt to GDP this year is 28%, having averaged 27% from 2014 to 2024. But Guatemala’s tax-to- GDP ratio is also one of the lowest in the region; in 2022, tax revenues were just 14.4% of GDP against a Latin American and Caribbean average of 21.5%.
The largest economy in Central America, Guatemala is currently attempting to pass its biggest-ever budget, 163.78 billion quetzals ($21.36 billion). Having passed a Competition Law last November after decades of trying, the government is going big on infrastructure projects. These include a planned metro for the capital and upgrading its ports and the main La Aurora airport in Guatemala City.
In the Caribbean, Barbados remains a moderate risk for investors according to Wall Street analysts interviewed for this piece, but with a significant reduction in its debt-to-GDP burden—down to 77% from a peak in 2018 of 158%—and signs of economic recovery. These include projected 2.7% growth for this year, according to the Barbados Central Bank, with unemployment at its lowest in recent history. The recovery is in part down to innovative use of tools such as the first debt-for-climate-resilience swap, which raised $125 million last December, following a trend of swapping high-interest debt for more sustainable issues.
Moody’s revised its rating outlook upward for the Bahamas in April from stable to positive, and the same month, Fitch announced a BB- with stable outlook, complimenting the islands’ high GDP per capita and fiscal consolidation. The government’s budget deficit declined to 1.3% of GDP in the fiscal year that ended in June, from 3.7% in fiscal year 2022-23. The primary surplus hit 2.9% in the following fiscal year, its highest level in 25 years. The new global minimum tax could add another 1% to the country’s GDP according to Fitch, although Washington’s declaration that it would pull out of the minimum tax accord has thrown the project into doubt.
Jamaica maintains a BB- rating with a positive outlook following Fitch’s review in February. Analysts argue that if Jamaica were to sell sovereign debt, it would benefit from having demonstrated fiscal discipline under multilateral programs—a contrast to the Dominican Republic, which, despite decades of strong GDP growth, has not shown the same record of controlling its finances.
Back in Latin America, Paraguay has leveraged capital market reforms to attract foreign investment. In December, the Central Bank of Paraguay changed its rules for the issuance, custody, and trading of public debt securities, including allowing foreign investors to buy bonds through global custodian banks. Coupled with expanding foreign exchange and hedging transactions for foreign investors, the change pushed the state’s sovereign debt to investment grade. Foreign funds had already increased investment in guarani-denominated government bonds from 1.7% in 2023 to 5% in 2024 due to Central Bank reforms enacted with World Bank assistance.
Due Diligence A Must
Why the divergence between ratings for the region’s larger and smaller, frontier economies?
“It’s difficult to identify a single reason,” says Martinez, “but broadly speaking, it seems that these frontier markets either seem to be demonstrating stronger growth rates or tighter fiscal positions than their larger neighbors have been capable of.”
Whether the trend continues, he warns, Latin America has shown less inclination to drive ambitious reforms than have emerging markets in Asia and Europe. Yet, investors are increasingly interested in local currency debt in Latin America, suggesting growing confidence in the region at the expense of the US dollar.
Rich Fogarty, head of the Disputes and Investigations Practice for Latin America at S-RM
If some countries are outperforming expectations, there are always some losers. An ongoing US Treasury Department investigation into Mexican financial institutions CIBanco, Intercam, and Vector has refocused the regional banking system on compliance with the Foreign Corrupt Practices Act (FCPA). After a brief state intervention, Banco Multiva acquired CIBanco’s assets in August; the same month, Kapital Bank bought Intercam Banco, pledging to invest $100 million in it. This comes at a sensitive time for Kapital, which is looking for investors at a proposed valuation of $1.4 billion.
Rich Fogarty, head of the Disputes and Investigations Practice for Latin America at consultancy S-RM, says, “Compliance is an afterthought most of the time. There will be all sorts of risks with digital assets and digital banking, especially with cartel and TCO [transnational criminal organization] issues.”
Digital banking is of particular concern to Mexico, since it has seen a spurt of foreign fintechs attempt to break into its market in the past five years. Brazil’s Nubank now boasts over 12 million customers in Mexico alone and will soon be joined by Argentina’s Mercado Pago. A mixture of lax oversight, volume of entrants, ongoing investigations and diverse financial backgrounds has Fogarty concerned.
Both established economies in the region and those with significant room for development face a common challenge, however, Fogarty notes: US policy highlighted by potentially explosive antinarcotic action, a remittance tax, and tariffs that will affect commodity prices.
“There are tremendous opportunities independent of any of the political crosswinds or regulatory questions. Argentina, Panama, Brazil, and Mexico are real opportunities,” he says. But “given the increased scrutiny by this US administration on the region, which may be more transactional in nature, CEOs need to not just be doing due diligence, but going above and beyond. If they don’t, there are some potentially serious repercussions.”
Joseph Giarraputo, Founder and Editorial Director of Global Finance, speaks with Sabine Zucker, RBI’s Head of Group Transaction Banking, about the products and services required to support cross-border growth with smooth transactions and operational continuity in CEE markets.
Based on RBI’s over three decades of experience operating in these economies with 12 full-service banks, Zucker believes corporates have a lot to be excited about when looking at the region’s future. From Serbia, to Albania, to Croatia, for example, GDP growth is outpacing many Western European counterparts.
Yet companies need to be flexible in the face of the inevitable challenges stemming from uncertainty in today’s market environment as well as fluctuating geopolitical and compliance landscapes.
A case in point is the need for risk mitigating products like guarantees and letters of credit. At the same time, local transaction banking and trade finance expertise is vital to interpret and overcome requirements that differ from country to country.
More specifically, companies expanding into the CEE region need robust and comprehensive cash management and payment solutions. In response, RBI developed CMIplus, a flagship cash management platform designed from the ground up to support real-time, omnichannel treasury operations
Effective trade finance solutions are also essential to managing supply chains.These are particularly important for those international corporates that need longer guarantees for different types of business, in turn calling for local staff with on-the-ground expertise.
Watch this video to get further insights into what it takes for international businesses to succeed in CEE markets, and how an experienced banking partner can help.
An agreement designed to further liberalise trade between the EU and Kyiv came into force on Wednesday.
It will replace the deal in place since 2016, by expanding tariff-free access for Ukrainian goods and services.
However the new agreement has become a political headache for the European Commission, as Hungary, Poland and Slovakia are not lifting bans on Ukrainian agricultural imports.
“We are engaging with all the parties to try to find solutions,” Commission deputy chief spokesperson Ariana Podesta said on Tuesday.
“We believe (the agreement) is a stable, fair framework, that can be reliable both for the EU and for Ukraine, to ensure a gradual integration in our single market, while providing stable trade flows,” Podesta added.
The new deal includes safeguards limiting imports of certain sensitive products such as grains and oil. Nevertheless, Hungary, Poland and Slovakia have refused to lift their national bans on Ukrainian agri-food imports.
These restrictions were first introduced after the EU opened its market completely to Ukrainian agricultural products following Russia’s invasion of Ukraine, as the Black Sea — a vital export corridor for Kyiv — was effectively blocked.
The resulting land corridors into the EU, designed to keep Ukrainian exports flowing, sparked anger among farmers in neighbouring countries who accused Brussels of allowing unfair competition.
Politically charged
The issue became politically charged, weighing on Poland’s 2023 general election and fuelling tensions in Slovakia and Hungary.
“After the war, imports of agriculture to the EU doubled. We have 117% increase compared to the pre-war levels,” Tinatin Akhvlediani, an expert at the Centre for European Policy Studies (CEPS), told Euronews.
However, Akhvlediani added that “it has been unnecessarily politicised because these Ukrainian goods were easily absorbed by the neighbouring countries.”
Ukraine’s main agricultural exports — grain, sugar and oil — are largely unprocessed goods.
“This is complementary with the trading of the EU because it mostly exports processed agricultural goods,” Akhvlediani explained.
“Ukrainian goods in fact are highly demanded in the EU market. That explains why Ukraine is the third largest import partner for the European Union after Brazil and the UK.”
The new trade deal includes a “safeguard clause” allowing either side to impose protective measures if surging imports damage domestic industries.
Yet this has not eased concerns in neighbouring countries.
“Although Brussels wants to give farmers’ money to Ukraine, we are protecting the resources, the livelihoods of Hungarian producers and our market,” Hungarian Agriculture Minister István Nagy wrote on Facebook on Monday, as he and his EU peers met in Brussels.
The ongoing dispute illustrates the broader obstacles facing Ukraine’s path to EU membership.
Within the bloc, some are concerned about how Ukraine’s enormous agricultural capacity — 42 million hectares of cultivated land, the largest in Europe — would affect the Common Agricultural Policy (CAP), which distributes funds based on farm size.
Even if CAP payments were reformed to focus on production rather than land area, “Ukraine remains quite competitive,” Akhvlediani said.
“The solution could be that the EU puts transition measures in the accession treaty which would limit the benefit from certain policies or not benefit from them at all. This could be the case for the CAP. It’s completely up to the EU,” she concluded.
Romanian President Nicușor Dan, whose country also borders Ukraine, is one of the rare EU leaders to have spoken openly about the issue, saying the discussion about agriculture is “pending”.
According to the Romanian president, the risks of imbalances for the EU are “significant”, especially since Ukraine “does not currently meet the standards that we impose on the agricultural sector in the EU.”
“The discussions taking place are that, in terms of agriculture, Ukraine should have a special status so that it can continue to make significant exports to non-European countries while, in all other clusters, it should be treated as an equal,” Dan said.
With a new US tariff regime in place, the region’s economies face their greatest disruption in at least a generation.
When US President Donald Trump initiated a new regime of tariffs on global imports reaching the US, investors reacted by retracting forecasts and rethinking investment dynamics while companies globally started preparing their doomsday scenarios.
The effects in Latin America were no different. Brazil, the worst affected economy, now faces tariffs up to 50% on its exports and services provided to the US: the second highest tariffs Trump has applied to any country, equal to those imposed on India and behind only those hitting China.
Most Latin American companies and economies are not affected as severely as Brazil, but Venezuela’s oil-exporting economy is now also affected by secondary tariffs on third countries doing business with it. The entire region also must reckon with the prospect of reduced global commerce flows and reshaped trade and investment dynamics.
Most Latin economies principally export agricultural products, commodities, textiles, and—in the cases of Mexico, Brazil, and Argentina—manufactured goods. The region’s economies find themselves navigating the greatest disruption in at least a generation. Ultimately, however, some sectors may benefit from trade diversion and new marketing openings.
Venezuela
Aside from Cuba, Venezuela is the only Latin American country heavily sanctioned by the US, which has frozen most of its direct trade in both directions. However, Venezuela still exports oil and gas to a variety of countries. These are now affected by 25% secondary tariffs for purchasing oil and commodities from the big exporter.
“Venezuela remains a rich country with substantial natural resources, enormous potential for investment and a low entrance ticket at the moment for those with patience to ride the current waves and a strategic approach to their portfolio,” says Horacio Velutini, director at Conapri, the agency for investment promotion in Venezuela, and former CEO of the Caracas Stock Exchange.
“We’ve had a highly controlled economy since 1920, heavily dependent on petrol exports, which created the space for never-corrected macroeconomic imbalances,” he notes. The US sanctions began in 2015, but “despite curbing Venezuelan exports to the US, they had the opposite effect of what was intended. New markets opened and the poorest people of the country ended up most affected with the loss of revenue and social and infrastructure programs. Venezuelan entrepreneurs started more heavily investing in their own country, and we see this in the movements of the Caracas Stock Exchange.”
According to Velutini, the privately held bourse currently has a market capitalization of some $7 billion, with an annual exchange volume of between $300 million and $400 million, mostly from Venezuelan investors.
Despite sanctions, some international corporations, including US ones, continue to operate in Venezuela. These include Chevron, under a special authorization from the US government to participate in a joint venture with PDVSA, the Venezuelan state oil company, and Italy’s Repsol.
The sanctions and the political standoff between Caracas and Washington have undoubtedly damaged the Venezuelan economy, Velutini allows.
That said, Venezuela’s GDP has grown for 17 straight quarters, the latest forecast by the Central Bank of Venezuela (BCV) indicates 9.3% growth in 2025 and 5% growth in 2026, he adds. Sources outside Venezuela are less enthusiastic: the UN estimates 5.8% growth this year, while the World Bank projects 2.3% in 2025, and 2.5% in 2026-2027. The IMF has a much grimmer outlook for 2026, projecting the country’s economy to shrink by 5.5%.
Brazil
Latin America’s largest economy and the world’s tenth largest is in a political as well as a trade-based face-off with the US. The Trump administration has been unwilling to negotiate down its 50% tariff on Brazilian goods unless the government of President Luiz Inácio Lula da Silva drops charges against former President Jair Bolsonaro, now convicted by the Brazilian Supreme Federal Court (STF) to 27 years in prison for plotting a coup to remain in power.
Brazilian businesses are struggling to adapt to the new tariffs; China has surpassed the US as the biggest importer of Brazilian goods, while the US sank to the second-largest importer.
Daniel Teles, a partner at Valor Investimentos
“Most meat exports, coffee (Brazil is the world’s largest world exporter of the beans), semi-finished steel products, marble and granite, are affected,” says Daniel Teles, a partner at Valor Investimentos, who works in partnership with Brazilian investment house XP. “Orange juice is one example with detrimental effects on both countries. The US does not produce enough to supply the local market, and the tariffs on their largest exporter will inflate prices for US consumers.”
The principal challenges are lack of clarity going forward along with possible reciprocal tariffs and increased logistic costs.”The US strategy is clear,” says Teles. “They want to reindustrialize the country, increase growth through both local employment and taxation, and curb activity by countries still trading with Russia and other rivals.”
As Brazil scrambles to respond, its trading patterns are being significantly altered.
“Despite the first negative effects, we already see some positive market responses,” Teles says, “such as efforts to redesign logistic flows and a frantic search for new markets, along with expanded trade to current secondary markets. China had already overtaken the US as Brazil’s largest trading partner. This should now increase over time because of US barriers. Kazakhstan, the Gulf Cooperation Council countries, including Saudi Arabia, the EU, and Egypt have untapped potential, too.”
Other Latin countries face similar uncertainties, but not as severe. Mexico has a plant structure similar to Brazil’s but is less affected by the new tariff levels. Argentina has a dollarized economy, helping it absorb the new rates. Uruguay and Paraguay attract foreign direct investment both in the form of companies and wealthy individuals trying to escape heavier taxation elsewhere and, thus, are not as affected by US tariffs as its neighbors.
“In the short term,” Teles predicts, “much of the current uncertainties, including the diplomatic tensions and the risk of further sanctions and tariffs, should remain.” Nevertheless, the Brazilian stock exchange reached an alltime high on September 8, the economy is growing, and official interest rates in Brazil remains at 15%, low enough to attract investment.
Paulo Oliveira, CFO of Formosa Supermercados, which operates grocery and convenience stores, says, “What we see is companies affected by the tariffs absorbing the first impact and lowering their profits, but also trying to sell extra production within the Brazilian market, leading to price drops in coffee, meat products, and several vegetables.”
There will be “significant losses” in prepared containers not yet shipped to the US, Oliveira says, adding that an average of 2,000 containers per week “will now need to find new buyers. Producers of mango and grape from the northeastern part of Brazil, who had the US as their primary market, suffered significant losses and are having to rethink the sales of the current harvest and how they will manage the next cycle.”
Peru
Compared to most Latin American economies, Peru remains stable, with the key interest rate fixed at 4.5% and inflation not expected to surpass 1.7% this year. Most domestic output is centered in services, agricultural products, and mining commodities, especially refined copper, gold, and silver, as well as textiles.
The new US tariff rates mostly affect exports of blueberries, grapes, avocados, and textiles, according to Luis Pretel, senior auditing partner for financial products and commodities at Deloitte Touche & Tomatsu in Peru.
“The solution,” he says, “has been to diversify markets focusing on China, which is already a major player in Peru, as well as searching for new markets in Latin America. Thanks to the mega-port of Chancay, operated by China and inaugurated last year, exports to Asia have become simpler for the country.”
Peruvian companies are redesigning and improving their logistics processes, he notes, introducing digitalization, robotization, and AI, and crafting new cooperative and international agreements.
“Luckily, refined copper has been on the list of exemptions of US tariffs,” he adds, “and that industry is not affected by the current measures while gold and silver are stable in the international markets.”
That said, the government has lowered its GDP growth prediction for the year from 4.1% to 3.5%, anticipating diminished economic output and investments.
Pretel remains guardedly optimistic, however: “Ultimately, this will result in better logistic flows, new market openings, and Peru adapting through new strategies and a fully independent central bank, which will mitigate the political uncertainties and maintain local economic stability.”
Published on 29/10/2025 – 11:09 GMT+1 •Updated
11:11
Nvidia shares continued their dramatic rise this week as investors banked on an easing of semiconductor trade restrictions between the US and China.
Ahead of a meeting with Chinese President Xi Jinping on Thursday, US President Donald Trump said he planned to discuss Nvidia’s advanced Blackwell artificial intelligence chip with Xi.
“We’ll be speaking about Blackwell, it’s the super duper chip,” he told reporters on Wednesday.
The president didn’t elaborate on specific policy aims, although he said he was “very optimistic” about the meeting with his Chinese counterpart.
By around 11:00 CET, Nvidia shares had jumped over 3% in pre-market trading, bringing the firm closer to a $5 trillion market capitalisation.
Semiconductors have been a key point of contention between the US and China as both nations seek to lead on advanced technologies such as AI.
The tiny chips, used to power a range of electronic devices from smartphones to medical equipment, are essential to this ambition. Since 2022, the US has therefore restricted Nvidia’s sales of advanced chips to China for national security reasons.
Trump has flip-flopped on export controls since his arrival in the White House, first restricting and then approving sales of Nvidia’s H20 AI chip to China. Nvidia designed the H20 specifically for the Chinese market to comply with Biden-era export curbs, although the Trump administration previously said it was concerned the tech could be used for military purposes.
With regard to the Blackwell processor, Trump suggested months ago that he would consider allowing Nvidia to export a downgraded version of the chip to China.
Progress on such a proposal would come as a relief to Nvidia CEO Jensen Huang, who has long criticised US restrictions. Huang has notably argued that such curbs are boosting China’s AI capabilities as the Chinese market is forced to become less reliant on US products.
It seems that such logic is already understood in Beijing, even as the US softens its stance. After Washington gave the green light to H20 exports, China’s regulator banned the country’s biggest tech companies from buying Nvidia’s artificial intelligence chips.
“The president has licensed us to ship to China, but China has blocked us from being able to ship to China,” Huang said at a Nvidia event this week in Washington. “They’ve made it very clear that they don’t want Nvidia to be there right now.”
In a document released by Beijing on Tuesday, the Communist party reiterated the importance of self-sufficiency, calling for “extraordinary measures” to achieve “decisive breakthroughs” in technologies such as semiconductors.
“The most important factor in promoting high-quality development is to accelerate high-level scientific and technological self-reliance,” Xi said in a speech released by state news agency Xinhua.
While it’s possible that Chinese restrictions on Nvidia chips could be a long-lasting policy, experts have suggested that the move may be a bargaining chip in trade negotiations with Washington.
Such policy U-turns are creating uncertainty for investors despite the fact that Nvidia shares have risen roughly 50% this year, driven higher by AI ambitions.
NEW YORK — President Trump’s lawyers have asked a New York state appeals court to toss out his hush money criminal conviction, saying federal law preempts state law and there was no intent to commit a crime.
The lawyers filed their written arguments with the state’s mid-level appeals court just before midnight Monday.
In June, the lawyers asked a federal appeals court to move the case to federal court, where the Republican president can challenge the conviction on presidential immunity grounds. The appeals court has not yet ruled.
Trump was convicted in May 2024 of 34 felony counts of falsifying business records to conceal a hush money payment to adult film actor Stormy Daniels, whose affair allegations threatened to upend his 2016 presidential campaign. Trump denies her claim and said he did nothing wrong. It was the only one of the four criminal cases against him to go to trial.
Trump was sentenced in January to what’s known as an unconditional discharge, leaving his conviction on the books but sparing him jail, probation, a fine or other punishment.
Appearing by video at his sentencing, Trump called the case a “political witch hunt,” “a weaponization of government” and “an embarrassment to New York.”
The Manhattan district attorney’s office, which prosecuted the case, will have a chance to respond to the appeals arguments in court papers. A message seeking comment was left with the office Tuesday.
At trial, prosecutors said Trump mislabeled payments to his then-lawyer Michael Cohen as legal fees to conceal that he was actually reimbursing the $130,000 that Cohen paid Daniels to keep her quiet in the final weeks of Trump’s successful 2016 presidential run.
At the time, Daniels was considering going public with a claim that she and the married Trump had a 2006 sexual encounter that Trump has consistently denied.
In their arguments to the New York state appeals court, Trump’s lawyers wrote that the prosecution of Trump was “the most politically charged prosecution in our Nation’s history.”
They said Trump was the victim of a Democratic district attorney in Manhattan who “concocted a purported felony by stacking time-barred misdemeanors under a convoluted legal theory” during a contentious presidential election in which Trump was the leading Republican candidate.
They wrote that federal law preempts the “misdemeanor-turned-felony charges” because the charges rely on an alleged violation of federal campaign regulations that states cannot enforce.
They said the trial was also spoiled when prosecutors introduced official presidential acts that the Supreme Court has made clear cannot be used as evidence against a U.S. president.
“Beyond these fatal flaws, the evidence was clearly insufficient to convict,” the lawyers wrote.
The lawyers also attacked the conviction on the grounds that “pure, evidence-free speculation” was behind the effort by prosecutors to persuade jurors that Trump was thinking about the 2020 election when he allegedly decided to reimburse Cohen.
Published on 28/10/2025 – 16:58 GMT+1 •Updated
16:59
Apple’s stock reached new heights on Tuesday, trading above $269 a share and pushing the company’s market capitalisation to a record $4 trillion (€3.4tr). That followed stronger-than-expected demand for its latest iPhone 17.
The Cupertino-based technology giant therefore joins the elite club with Nvidia and Microsoft, which both surpassed the same valuation earlier this year.
Nvidia, the semiconductor powerhouse, became the first company in history to hit the $4tn milestone in July 2025. News of soaring AI investments and the firm’s strong profit outlook have continued to lift its share price since then, now approaching $4.7tn (€4tn).
The so-called Magnificent Seven, the seven largest publicly traded technology companies in the world, have been cashing in on the AI boom this year, with tech share prices rising accordingly. Since January, Apple shares are up more than 18%, Nvidia’s nearly 40%, and Microsoft’s close to 30%.
However, Apple has mostly stayed out of the race to invest billions in AI projects. Current market enthusiasm for the iPhone maker’s stock instead stems from the successful launch of its updated iPhone range, along with signs of easing trade and tariff pressures.
According to Counterpoint Research, the iPhone 17 series has outsold the iPhone 16 range by 14% during its first ten days on sale in China and the United States.
Five members of the Magnificent Seven, Alphabet, Apple, Amazon, Microsoft, and Meta, are reporting earnings this week. They will need to demonstrate strong growth and justify the massive spending currently underway in artificial intelligence, amid growing concerns that the sector may be forming a bubble reminiscent of the dot-com boom that burst in 2000.
According to Kate Leaman, chief market analyst at AvaTrade:”Markets move on leadership, and right now, the leadership of Microsoft, Meta, Alphabet, Amazon, and Apple is inseparable from the risk appetite of investors worldwide.”
She noted that more than 40% of S&P 500 gains this year have come via these giants.
“But with that concentration comes fragility,” she added, saying that even as revenues climb, the commentary provided by executives “will critically frame how far and how confidently the market can chase the AI story into 2026”.
A host of enhancements to cross-border payments are promising to enrich the global payments landscape. But implementing change within this complex industry isn’t straightforward.
In today’s instant, interconnected world, a crucial juncture has been reached in cross-border payments. Businesses and consumers – increasingly frustrated with inadequate, inefficient legacy international payment processes – are demanding fast, transparent and low-cost services from their providers. And the need for the industry to deliver is becoming ever-more pressing.
Initiatives are progressing at pace to help facilitate the move to seamless, 24/7 real-time global payments. The aim is to effectively replicate the same client experience that has become easily accessible in the domestic payments space. But change of this scale comes with challenges, and a by-product of the race to deliver real-time cross-border payments is a landscape inundated with different concepts and services, with fragmentation exacerbated by individual countries’ unique sets of payments rules and regulations.
Internationally, initiatives such as the G20 Roadmap for Enhancing Cross-Border Payments, which sets out quantitative targets to help make cross-border payments cheaper, faster, more transparent and accessible by 2027, have catalysed industry-wide efforts to promote greater standardization, legal and regulatory harmonization and payment system interoperability1. Certainly, as the industry edges closer to enhanced cross-border payments, there must be a focus not only on enablement, but standardization to tackle the fragmentation head-on, while also ensuring security and client satisfaction are maximized.
The challenging world of cross-border payments
Moving funds internationally is a complex undertaking, involving multiple parties, navigating time zones and adhering to regulatory requirements of each jurisdiction. This makes the process slow and convoluted, with high costs for both sender and receiver, and a lack of transparency regarding payment status and the associated fees. Given this, it is unsurprising that global payments have become a pain point for clients – and indeed their banking partners. Financial institutions (FIs) are only too aware of the impact of legacy processes on client service, and the very real need to implement enhanced processes to get global payments up to speed – literally – with the demands of the 21st century.
As banks resolve to deliver cutting-edge cross-border payments, they face legacy platform challenges, a lack of real-time infrastructure, and innovation hobbled by regulatory constraints. Against this backdrop, banks must also contend with an increasingly competitive landscape. Inventive, nimble non-bank players with a global presence have thrown their hats into the cross-border payments ring to deliver non-traditional approaches to solve the high cost and obscurity problem. By creating alternative payment networks, fintechs are providing a user experience that many banks are currently unable to match when it comes to speed, transparency and cost.
As FIs seek to overcome these obstacles and provide clients with flexible, instant cross-border payments, aligning with the pillars of the G20 Roadmap is essential for supporting a uniform global payments ecosystem and enabling banks to progress effectively towards the cross-border end goal. Designed to promote faster acceleration of global instant payments, it is invaluable to helping the banking industry most effectively chart a path to a coherent, consistent future.
Fusing the old and the new: combining legacy low-value rails with instant clearing
A key approach the industry is adopting will enhance existing infrastructure, with an emphasis on improving speed and visibility. Banks are readily implementing new industry initiatives – such as those provided by Swift – and other new technologies and processes to meet the needs of their global clients.
For example, by standardizing correspondent banking payment reporting under uniform rules, Swift gpi provides real-time, end-to-end tracking and transparency for cross-border payments. This has subsequently contributed to reduced overall end-to-end processing times, and therefore a better service for clients. Building on the success of Swift gpi, Swift Go standardizes correspondent banking relationships under uniform service level agreements. This enables similar capabilities for the low-value payment space – facilitating more efficient delivery channels such as ACH and instant payments, rather than funds transfers only.
Complementing these developments, financial institutions are embracing interoperability, alternative payment rails, and smart foreign exchange (FX) services to reduce costs and enhance service delivery. BNY’s Swift to ACH initiative allows financial institutions to initiate cross-border payments via ISO 20022 pacs.008 messages and deliver them through the domestic US ACH rail – a lower-cost alternative to traditional USD wire transfers. Beneficiaries receive the full amount by the next day, while originators benefit from reduced transaction costs and the ability to provide a predictable client experience. This service is part of a suite of Low Value Payment resources that include offering FX conversions into a wide range of local currencies for delivery over low-cost payment rails – helping institutions lower costs and stay competitive with fintech offerings. BNY’s extensive correspondent banking network, along with strategic collaborations with fintechs and other service providers, empower us to broaden our offering to deliver a wider range of service beyond conventional financial services.
The combination of industry and proprietary initiatives are helping banks to expand their global payments value propositions and deliver the quality of service that clients are seeking – without the need for prohibitively expensive investment in new infrastructure. Banks are becoming truly competitive in today’s cross-border payments space.
Standing on solid ground: foundations for consistency
The next step is to enable interoperability and connectivity between different payments systems and platforms by aligning compliance and regulatory requirements across jurisdictions. This requires governments, network operators, banks, and industry bodies to move in the same direction, adopt common standards, and create uniform processes for exception management. Encouragingly, progress is already underway across several regions.
This is being addressed in Europe through the EPC’s One-Leg Out Instant Credit Transfer (OCT Inst) scheme, which enables payment service providers (PSPs) to leverage existing Single Euro Payments Area (SEPA) payment rails – including procedures, features, and standards – to facilitate cross-border payments that have one euro leg inside and one leg outside SEPA. For example, in November 2024 EBA CLEARING went live with an OCT Inst Service for RT1, its pan-European, real-time payment processing system for instant credit transfers2.
A similar approach is being adopted in other markets to enable cross-border interoperability using existing domestic rails. One notable example is BNY’s partnership with the Commonwealth Bank of Australia (CBA). Through our correspondent banking relationship, BNY clients can now send real-time payments to Australia 24/7, 365 days a year. This has been made possible by a new feature within the New Payments Platform (NPP), Australia’s real-time payments system. The International Payments Service (IPS) allows the Australian dollar component of inbound cross-border payments to be processed instantly. Previously, international transactions could only be settled via traditional funds transfers. Now, CBA can settle and clear payments on BNY’s behalf 24/7, with beneficiaries able to access funds in as little as 60 seconds – regardless of the sender’s location. With a network of over 2,000 correspondent banks across the globe, BNY is replicating this process with partner banks in other countries as other jurisdictions adopt an international framework within their instant payment schemes.
Elsewhere, the US-Mexico-Canada agreement (USMCA) has been established to enhance cross-border payments between the three countries. As part of the strategy, input from fintechs is being encouraged to share skillsets and develop optimized processes.
Certainly, fintechs and emerging technologies have a role to play in shaping global payments. Blockchain-based services for continuous settlement on a single ledger are emerging as alternatives to correspondent banking. Several markets are increasingly selecting digital wallets as a preferred service option.
Combined, these infrastructure developments may allow global payments to occur at any time, without being limited by business hours, time zones, or working days. This could result in greater cash flow visibility, more efficient supplier management, and improved liquidity control for businesses. Overall, real-time payments have increased flexibility in managing liquidity.
Piecing together the payments puzzle
While the industry unites to create a more standardized environment there will, however, inevitably continue to be different schemes in different markets, all with their own unique models, rules and Service Level Agreements. Banks should consider their target markets and integration with relevant initiatives to effectively meet clients’ international payment needs.
Banks then must provide a one-stop shop for global payments that allows clients to move money fast, anywhere, and anytime with ease. Indeed, with complexity and fragmentation rife, it is the ability to offer a simple, effective experience that will provide the greatest value.
At the same time, the industry must work towards integrating common values and infrastructure within initiatives such as ‘one-leg-out’ settlement, digital wallets and correspondent banking models, to enable the global payments ecosystem as a whole to function seamlessly. In this respect, the G20 Roadmap should be regarded almost as a North Star, guiding the industry towards alignment by following its principles. Doing so will help to instil a common infrastructure framework, centered on standardized rules and principles around 24/7 availability, transparency, finality, fraud prevention, and a common messaging standard.
While fragmentation continues to exist within cross-border infrastructure, building solid foundations and promoting collaboration will champion future solidarity, manage markets holistically for a truly global solution, and map the path for future connectivity.
Joanne Strobel-Cort, Managing Director, Head of International Payments Products Treasury Services | BNY
About The Author
Joanne Strobel-Cort is Head of International Payments Products at BNY, steering strategy, development, and execution of global payments solutions. With over 30 years’ experience, Joanne has held senior roles at Wells Fargo—leading segment solutions, technical sales and network management—and served as Head of Payables Products at Citizens Bank, with prior transaction banking positions at Deutsche Bank, ABN AMRO and Citibank. An industry authority, she has participated in SWIFT councils, chaired CHIPS and BAFT committees, spoken at SIBOS and published articles on cross-border payments.
Global tensions are escalating over rare earth minerals after China applied severe export controls on critical minerals required to manufacture almost everything – from cars to weapons. The move has also sparked concerns about the global supply chain.
Strategic meetings will be held between European Union officials and Chinese representatives, starting with a videoconference Monday, to be followed by a meeting in Brussels the following day.
Meanwhile, US President Donald Trump will meet his Chinese counterpart Xi Jinping on Thursday in South Korea, with financial markets attentive to whether the world’s two largest economic powers can bury the hatchet in their trade war.
At the heart of the dispute is China’s 9 October decision to restrict exports of rare earth elements. While these controls were initially a response to US tariffs, the EU has become collateral damage in the dispute and is considering ways to respond.
Why is China restricting rare earth exports?
Tensions first emerged between the US and China after Donald Trump returned to the White House and carried through an aggressive tariff policy – which the administration argues is needed to narrow a growing trade deficit – on allies and rivals alike.
On 2 April 2025 — coinciding with what Trump defined as US’ “Liberation Day” — Washington announced a 34% tariff on Chinese goods imported into the country, which, added to the existing 20%, brought total duties to 54%.
The trade war escalated after China responded with counter-tariffs, which surpassed the 100% threshold, making trade between the two practically impossible. Beyond the tariffs, to hit back, China looked to weaponise its monopoly over rare earth elements, imposing additional export restrictions on 4 April that have since remained in place.
Rare earths are a group of 17 elements used across the defence, electric vehicle, energy and electronics industries.
The world, including the EU, is heavily dependent on China, as the country controls 60% of global production and 90% of their refining, according to the International Energy Agency (IEA).
After a short truce, the dispute flared up again in September, and on 9 October 2025, China decided to extend its control over rare earth elements from seven to 12. The announcement was seen as China building leverage over the United States. The meeting between the two sides this week is crucial in dictating the path forward.
Meanwhile, the EU is caught between the two. While these restrictions aimed mostly at the US, it has also impacted the European industry. The controls take the form of licenses that are difficult to obtain, with European companies bearing the brunt, as European Commisisioner for Trade Maroš Šefčovič has repeatedly pointed out.
How is the EU responding?
In a speech over the weekend, European Commission President Ursula von der Leyen, said the Union is prepared to use all the tools at its disposal to combat what some European leaders, including French President Emmanuel Macron, have described as economic coercion from China.
The remarks from the Commission president alluded to what is known as the anti-coercion instrument – designed with China in mind but never used.
The ACI, adopted in 2023, would allow the EU hit back at a third country by imposing tariffs or even restricting access to public procurement, licenses, or intellectual property rights.
“In the short term, we are focusing on finding solutions with our Chinese counterparts,” Commission president Ursula von der Leyen said on Saturday, warning, however, “But we are ready to use all of the instruments in our toolbox to respond if needed.”
European Council President António Costa met on Monday with Chinese Premier Li Qiang on the sidelines of the ASEAN Summit in Kuala Lumpur.
“I shared my strong concern about China’s expanding export controls on critical raw materials and related goods and technologies,” Costa said after the meeting, adding: “I urged him to restore as soon as possible fluid, reliable and predictable supply chains.”
Yet, tensions persist.
A planned meeting between Šefčovič and his Chinese counterpart Wang Wentao was cancelled and replaced by high-level talks between Chinese and European experts, a Commission spokesperson has confirmed. A video conference took place on Monday, and Chinese officials are set to arrive in Brussels for a meeting on Thursday.
On Saturday, Von der Leyen announced a new plan – RESourceEU – exploring joint purchasing and stockpiling of rare earth, as well as “strategic” projects for the production and processing of critical raw materials here in Europe.
The EU also hopes to diversify its suppliers worldwide.
“We will speed up work on critical raw materials partnerships with countries like Ukraine and Australia, Canada, Kazakhstan, Uzbekistan, Chile or Greenland,” von der Leyen said.
Global markets were buoyed on Monday morning by expectations of another Fed rate cut and growing optimism that the US and China are moving closer to a trade deal, following comments from President Donald Trump.
The optimism wiped out gains in safe-haven assets such as gold futures and boosted stock exchanges across the globe.
Yet, leading European benchmark indexes opened mostly flat, except for Milan’s FTSE MIB, which was up by 0.61%. Madrid IBEX 35 also gained 0.37% by around 11:00 CEST.
At the same time, European benchmark STOXX 600, as well as the FTSE 100 in London, remained nearly flat. The DAX in Frankfurt gained 0.15% while Paris’ CAC 40 lost less than 0.1%. This came after credit rating agency Moody’s changed France’s outlook from stable to negative on Friday.
Investors in Europe are closely watching for signs of economic health, with one of the strongest indicators — the first reading of the eurozone’s third-quarter GDP — due on Thursday.
On the same day, the European Central Bank (ECB) is scheduled to hold its monetary policy meeting. Given that inflation in the bloc has remained around the bank’s 2% target, the ECB is expected to hold interest rates steady this week for its third straight meeting. The key deposit rate has been at 2% since June.
US-China relations
Across the globe on Monday, US futures were mostly up in pre-market trading. This came as Asian shares rallied too, with Japan’s benchmark Nikkei 225 topping 50,000 for the first time.
Later this week, the US President has a scheduled meeting with the Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum (known as APEC), to discuss the trade deal between the world’s two strongest economies.
US and Chinese officials confirmed on Sunday that they had reached an initial consensus for Trump and President Xi Jinping to finalise during a meeting later in the week.
“I have a lot of respect for President Xi,” Trump told reporters after visiting Malaysia for a summit of Southeast Asian nations, where he reached preliminary trade agreements with Malaysia, Thailand, Cambodia, and Vietnam.
“I think we’re going to come away with a deal,” Trump said.
And investors see it as a strong signal. According to Stephen Innes of SPI Asset Management: “This isn’t just photo-op diplomacy. Behind the showmanship, Washington and Beijing’s top trade lieutenants have quietly mapped out a framework that might, just might, keep the world’s two largest economies from tearing up the field again.”
The enthusiasm brought about a shift in risk-taking among investors, demonstrated by a fall in gold futures. The safe-haven asset’s continuous contract fell by almost 2% on Monday morning, as an ounce was priced at $4,055.50.
The euro and Japanese yen remained flat against the US dollar. One euro was traded at $1.1638, while the greenback cost ¥152.8070. The British pound climbed 0.26% against the US dollar, and the rate was at $1.3345.
Crude oil prices fell after European markets opened, with both benchmarks trading nearly 1% lower. The US benchmark WTI crude’s price was $61.06 a barrel, and Brent was at $65.47.
In other dealings, leading cryptocurrencies were up. CoinDesk’s Bitcoin Price Index (XBX) gained 4.86% and climbed to $115,395.34. Ethereum cost $4,171.84, up by 4.82% on Monday morning in Europe.
Another Fed rate cut on the cards, coupled with Big Tech reports
Wall Street hit record highs on Friday, after lower-than-expected inflation numbers from the US fuelled further hope that the Federal Reserve is about to cut interest rates further this Wednesday.
The data on inflation was encouraging because it could mean less pain for lower- and middle-income households struggling with still-high increases in prices. Even more importantly for Wall Street, it could also clear the way for the Federal Reserve to keep cutting interest rates in hopes of giving a boost to the slowing job market.
The Fed just cut its main interest rate last month for the first time this year, but it’s been hesitant to promise more relief because lower rates can make inflation worse, beyond boosting the economy and prices for investments.
Meanwhile, a flood of big tech companies’ earnings is on its way this week, with Microsoft, Meta and Google-parent Alphabet reporting on Wednesday. Apple and Amazon’s numbers are due to be released on Thursday.
Better-than-expected profits could fuel hopes for steady growth in the US. Information is scarce about the current state of the world’s biggest economy due to the prolonged government shutdown.
HARRISBURG, Pa. — A yearlong investigation into suspected fraudulent voter registration forms submitted ahead of last year’s presidential election produced criminal charges Friday against six street canvassers and the man who led their work in Pennsylvania.
The allegations of fraud appeared to be motivated by the defendants’ desire to make money and keep their jobs and was not an effort to influence the election results, said Pennsylvania Atty Gen. Dave Sunday.
Guillermo Sainz, 33, described by prosecutors as the director of a company’s registration drives in Pennsylvania, was charged with three counts of solicitation of registration, a state law that prohibits offering money to reach registration quotas. A message seeking comment was left on a number associated with Sainz, who lives in Arizona. He did not have a lawyer listed in court records.
The six canvassers are charged with unsworn falsification, tampering with public records, forgery and violations of Pennsylvania election law. The charges relate to activities in three Republican-leaning Pennsylvania counties: York, Lancaster and Berks.
“We are confident that the motive behind these crimes was personal financial gain, and not a conspiracy or organized effort to tip any election for any one candidate or party,” Sunday said in a news release. Prosecutors said the forms included all party affiliations.
In a court affidavit filed with the criminal charges on Friday, investigators said Sainz, an employee of Field+Media Corps, “instituted unlawful financial incentives and pressures in his push to meet company goals to maintain funding which in turn spurred some canvassers to create and submit fake forms to earn more money.”
The chief executive of Field+Media Corps, based in Mesa, Ariz., said last year the company was proud of its work to expand voting but had no information about problematic registration forms. A message seeking comment was left Friday for the CEO, Francisco Heredia. The Field+Media Corps website did not appear to be operative.
Field+Media was funded by Everybody Votes, an effort to improve voter registration rates in communities of color. The affidavit said Everybody Votes “fully cooperated” with the investigation and noted its contract with Field+Media prohibited payments on a per-registration basis.
“The investigation confirmed that we hold our partners to the highest standards of quality control when collecting, handling and delivering voter registration applications,” Everybody Votes said in a statement emailed by a spokesperson.
Sainz, who managed Pennsylvania operations from May to October 2024, is accused of paying canvassers based on how many signatures they collected. The police affidavit said Sainz told agents with the attorney general’s office earlier this month he was unaware of any canvassers paid extra hours if they reached a target number of forms.
“Sainz had to be asked the question multiple times before he stated he was not aware of this and that ‘everyone was an hourly worker,’ ” investigators wrote.
One canvasser said she created fake forms to boost her pay and believed others did, too, according to the police affidavit. Another told investigators that most of the registration forms he collected were “not real.” A third reported that when she realized she was not going to reach a daily quota, “she would make up names and information,” police wrote, “due to fear of losing her job.”
The investigation began in late October 2024, when election workers in Lancaster flagged about 2,500 voter registration forms for potential fraud. Authorities said they appeared to contain false names, suspicious handwriting, questionable signatures, incorrect addresses and other problematic details.
In a separate but related investigation, authorities in Monroe County late Friday filed voter registration fraud charges against three canvassers who worked for Field+Media Corps last year. All three defendants were charged with forgery, perjury, unsworn falsification, tampering with public records, identity theft and election law violations.
The suggestion of criminal activity related to the election came as the battleground state was considered pivotal to the presidential election, and then-candidate Donald Trump seized on the news. At a campaign event, he declared there was “cheating” involving “2,600” votes. The actual issue in Lancaster was about 2,500 suspected fraudulent voter registration forms, not ballots or votes.
L.A. County is bringing on a retired judge to tackle a $4-billion question: How can officials ensure that real victims are compensated from the biggest sex abuse payout in U.S. history — and not people who made up their claims?
The county has tapped Daniel Buckley, a former presiding judge of the county’s Superior Court, to vet cases brought by Downtown LA Law Group after The Times found nine people represented by the firm who said they were paid to sue the county by recruiters. Four of the plaintiffs said they were told to fabricate the claims.
Downtown LA Law Group, or DTLA, has denied paying any of its roughly 2,700 clients, but agreed to cover the cost of Buckley to examine their cases in the $4-billion sex abuse settlement.
In a letter sent to clients Monday, Andrew Morrow, the lead attorney in the firm’s sex abuse cases, noted there are “additional safeguards” and “vetting protocols” underway following recent reports of paid clients, but did not specifically mention the new judge.
“While we categorically deny this ever occurred, we take these matters seriously and welcome the implementation of additional review procedures to ensure false claims do not move forward in the process,” wrote Morrow, the chairman of the firm’s mass torts department.
On Oct. 17, Dawyn Harrison, the top attorney for the county, requested an investigation from the State Bar based on The Times’ reporting, saying she believed some of the settlement would flow to “the pockets of the plaintiffs’ bar” rather than victims.
“The actions described in the article, if true, are despicable and run afoul of ethical duties of attorneys and criminal law in California,” Harrison wrote in a letter to Erika Doherty, the bar’s interim executive director. “I request the State Bar investigate all of the potential fraudulent and illegal activities described in this letter.”
DTLA declined to comment last week. The firm has previously said it works “hard to present only meritorious claims and have systems in place to help weed out false or exaggerated allegations.”
The bulk of the claims will be reviewed by retired Superior Court Judge Louis Meisinger, who will decide awards between $100,000 and $3 million.
The amount will depend on the severity of the abuse, the impact on the victim’s life and the amount of evidence provided, according to the allocation protocol. The money will be paid out over five years unless the victim opts to get a one-time check for $150,000.
If the judges find cases they believe are fraudulent, the county can either resolve them through a $50,000 payment or get them removed from the settlement. The county saves money in that case, but runs the risk of the plaintiff continuing to litigate and landing a larger payout from a jury trial.
It’s unusual — but not unheard of — for a neutral arbiter to be appointed to investigate cases from a specific firm in a massive settlement.
Retired U.S. Bankruptcy Judge Barbara Houser, who is overseeing the $2.4-billion trust for victims of the Boy Scouts of Americas sex abuse cases, said last month that she had asked for an “independent third party” to vet the claims brought by Slater Slater Schulman after finding a pattern of “irregularities” and “procedural and factual problems” among its plaintiffs.
Slater Slater Schulman, headquartered in New York City, represents roughly 14,000 victims in the Boy Scouts case. It also represents roughly 3,700 people in the L.A. County settlement — the most of any firm, by far.
On Oct. 14, Lawrence Friedman, a former Department of Justice attorney who headed up the federal watchdog office for the bankruptcy system, spearheaded a blistering motion asking Houser to reduce Slater’s attorneys fees, which he estimated were at least $20 million. Friedman is seeking to push them out of the case, alleging the firm had “run amok” and “dangled the prospect of lottery sized payouts” in front of clients without vetting them.
“The SLATER law firm has little if any quality controls in place to validate the information in the 14,600 claims other than validating that they were real people who had filed the claim,” the motion stated. “…What SLATER has effectively created is simply a ‘Claims Machine’ designed to spit out huge wads of cash for itself!”
Clifford Robert, an outside attorney who is representing Slater Slater Schulman in its issues with the Boy Scouts cases, said the firm’s priority “has been and always will be securing justice on behalf of sexual abuse victims.”
Friedman, who has been outspoken about misconduct by mass tort attorneys in bankruptcy cases, said he now represents dozens of former Slater plaintiffs. The ex-clients alleged the firm waited more than a year before informing them their cases were undergoing additional vetting and their payments would be delayed. The firm told them this September about the outside investigation, which began in June 2024, according to an email attached to the Oct. 14 motion.
“We now agree that there are procedural and factual problems in some of our claim submissions to the Trust,” the three partners of Slater Slater Schulman wrote in a joint email to clients on Sept. 9. “Because of the problematic claims, we have agreed that all of our claim submissions to the Trust be vetted by an independent third party.”
Both judges who will vet the L.A. County sex abuse payouts work for Signature Resolution, a firm that specializes in resolving legal disputes outside the courtroom with a heavyweight roster of former judges and lawyers. Litigation management company BrownGreer will be the settlement administration arm, responsible for making sure the checks go out, liens are settled and the judges have the records they need from the 11,000 plaintiffs.
An additional 414 sex abuse claims that led to a separate $828-million settlement announced Oct. 17 will be reviewed by a different judge with the money distributed over the course of three years. That settlement, which involves claims from three firms that opted to litigate separately from the rest, is expected to receive final approval from the Board of Supervisors on Tuesday.
The county will give the first tranche of money to the fund administered by BrownGreer in January, though it’s unclear when that money will trickle down to victims. The additional fraud review could slow the process as the judges will need to decide what all 11,000 of the claims are worth before any of the money goes out.
“They should have had their duck in the rows at the beginning,” said Tammy Rogers, 56, who sued over sex abuse at a county-run shelter for children in 2022.
Rogers said she has seen her bank account depleted recently following a shoulder surgery and her daughter’s funeral. She said she’s grown skeptical the settlement money will come her way anytime soon after reading the recent coverage of plaintiffs who say they were paid to sue.
“They should have known people were going to come out of the woodwork and do stuff like this,” she said. “They should have taken this time in the beginning, not in the end.”
Tammy Rogers, one of the plaintiffs who sued L.A. County over alleged abuse at MacLaren Hall, says she’s worried the extra vetting may delay payments to victims.
(Carlin Stiehl/Los Angeles Times)
The number of claims has fluctuated in recent months as some of the firms have dismissed cases from plaintiffs who died, lost interest in their lawsuit, or stopped responding. Since the Times initial investigation ran on Oct. 2, DTLA has asked for the dismissal of at least 14 plaintiffs, according to a Times analysis of court records.
On Oct. 17, the firm asked a judge to dismiss three people in a 63-plaintiff lawsuit filed April 29 who told The Times they’d been paid to sue the county for sex abuse.
Quantavia Smith, whose case DTLA asked to be dismissed without prejudice, previously told The Times a recruiter paid her to join the litigation, but said she had a legitimate sex abuse claim against the county. She said the recruiter drove her to the office of a downtown law firm and then gave her $200.
The firm also asked to dismiss the cases of Nevada Barker and Austin Beagle with prejudice, meaning the cases can’t be refilled. The Times reported this month that the Texan couple were told to make up allegations of abuse at a county-run juvenile hall and provided a script by someone inside the firm’s downtown office. Both said they left the firm with $100.
The Times could not reach the alleged recruiter for comment.
Austin Beagle and Nevada Barker say they were unwittingly ushered into a fraudulent lawsuit against L.A. County filed by Downtown LA Law Group.
(Joe Garcia/For The Times)
On the morning the story published Oct. 16, Beagle and Barker each received an automated email from Vinesign, a legal e-signature site, telling them Downtown LA Law was requesting their signature on a document.
“I wish to affirm my claim that I was sexually abused in a Los Angeles County juvenile facility, and I was never paid to bring this claim forward,” stated the DTLA declaration, which they were asked to sign under the penalty of perjury.
Both said they did not want to sign as it was not true — and the opposite of what had just been published that morning in The Times. Beagle said the firm called twice that morning to discuss.
“We told them just dismiss it,” said Beagle. “We ain’t talking about it.”
Times assistant data and graphics editor Sean Greene contributed to this report.
South Africa, Nigeria, Mozambique, Burkina Faso removed from Financial Action Task Force’s financial crimes list.
Published On 24 Oct 202524 Oct 2025
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A global money-laundering watchdog has taken South Africa, Nigeria, Mozambique and Burkina Faso off its “grey list” of countries subjected to increased monitoring.
The Financial Action Task Force’s (FATF), a financial crimes watchdog based in France, on Friday said it was removing the four countries after “successful on-site visits” that showed “positive progress” in addressing shortcomings within agreed timeframes.
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The FATF maintains “grey” and “black” lists for countries it has identified as not meeting its standards. It considers grey list countries to be those with “strategic deficiencies” in their anti-money laundering regimes, but which are nonetheless working with the organisation to address them.
FATF President Elisa de Anda Madrazo called the removal of the four “a positive story for the continent of Africa”.
South Africa revamped its tools to detect money laundering and terrorist financing, she said, while Nigeria created better coordination between agencies, Mozambique increased its financial intelligence sharing, and Burkina Faso improved its oversight of financial institutions.
Nigeria and South Africa were added to the list in 2023, preceded by Mozambique in 2022 and Burkina Faso in 2021.
Officials from the four countries – which will no longer be subject to increased monitoring by the organisation – welcomed the decision.
Nigerian President Bola Ahmed Tinubu said the delisting marked a “major milestone in Nigeria’s journey towards economic reform, institutional integrity and global credibility”, while the country’s Financial Intelligence Unit separately said it had “worked resolutely through a 19-point action plan” to demonstrate its commitment to improvements.
Edward Kieswetter, commissioner of the South African Revenue Service, also cheered the update but said, “Removing the designation of grey listing is not a finish line but a milestone on a long-term journey toward building a robust and resilient financial ecosystem.”
Leaders in Mozambique and Burkina Faso did not immediately comment, though Mozambican officials had signalled for several months that they were optimistic about being removed.
In July, Finance Minister Carla Louveira said Mozambique was “not simply working to get off the grey list, but working so that in the fight against money laundering and terrorist financing, when the FATF makes its assessment in 2030, it will find a completely different situation from the one detected in 2021,” MZ News reported at the time.
More than 200 countries around the world have pledged to follow the standards of the FATF, which reviews their efforts to combat money laundering, as well as terrorist and weapons financing.
The FATF’s black or “high-risk” list consists of Iran, Myanmar and North Korea.
As Indonesia rapidly embraces digital transformation, Bank Mandiri is positioning itself as the nation’s financial backbone—powering connections across corporates, MSMEs, and consumers. Through its digital wholesale super-platform, Kopra by Mandiri, the bank has created a unified ecosystem that handles nearly a third of Indonesia’s digital transactions.
How does Bank Mandiri contribute to advancing Indonesia’s digital economy?
Bank Mandiri plays a pivotal role in driving Indonesia’s digital economy. As the country’s largest wholesale bank, we have the scale and ecosystem to connect every layer of the value chain. Through Kopra by Mandiri, we serve over 30,000 wholesale clients, from large corporates to suppliers and distributors, helping them digitalize their business processes.
We’ve built a tightly connected ecosystem by integrating three main platforms: Kopra by Mandiri for corporates, Livin’ by Mandiri as a super app for individuals, and Livin’ Merchant for MSMEs. Together, they account for roughly 30% of Indonesia’s digital transaction market share, positioning Mandiri as a key catalyst for national digital transformation.
What innovation sets Bank Mandiri apart from competitors?
Last year, we completely revamped Kopra by Mandiri, enhancing its interface and user experience to global standards. Every feature was redesigned to simplify transactions while maintaining full functionality. The result is a platform that, in many ways, meets or exceeds leading international benchmarks.
Kopra now offers a comprehensive suite of cash management, trade finance, and value-chain solutions. Clients can process up to 50,000 transactions in one go, customize liquidity schemes via drag-and-drop tools, and receive AI-based bill reminders and personalized biller recommendations. On the trade side, Kopra supports digital issuance and QR-verified guarantees, with real-time tracking and full ERP integration for faster, more seamless operations.
How does Kopra Embedded Finance strengthen Mandiri’s open banking strategy?
Kopra Embedded Finance extends Mandiri’s digital reach, enabling more than 200 API-based services that connect directly with clients’ ERP systems. This allows treasury teams to manage payments, collections, and working capital securely—without leaving their internal platforms. Over 1,000 clients already leverage this capability, making Kopra a regional benchmark in open-banking treasury innovation.
How does Kopra create value across the value chain?
Kopra builds closed-loop ecosystems linking corporates, suppliers, retailers, and consumers. By integrating with Livin’ by Mandiri, businesses can send bills and receive payments instantly, while Livin’ Merchant supports MSME digitalization in sectors such as FMCG. This connected ecosystem enhances convenience, trust, and sustainable growth.
How is AI shaping Kopra’s evolution?
We’re embedding AI to forecast cash flows, personalize product recommendations, and detect anomalies. Soon, we’ll launch AI-powered trade document verification and transparency scoring to strengthen risk management. Ultimately, our mission is simple: use technology to simplify complexity and empower clients to grow smarter.
September was a banner month for US investment-grade bond issuance as companies rushed to borrow in a market benefiting from falling interest rates and tight risk premiums.
PitchBook tallied $56.4 billion in new bonds through the first week of September, with the month’s total swelling to over $172 billion. The surge followed the Federal Reserve’s rate cut of 25 basis points at its Sept. 16-17 meeting. Lower borrowing costs make it cheaper for companies to fund acquisitions or shore up corporate coffers. On Sept. 18 alone, at least nine corporate issuers raised nearly $15 billion in bonds.
“That was a busy day,” says Nick Elfner, co-head of research at Boston-based fixed income manager Breckinridge Capital Advisors. The investment-grade bond market has repeatedly demonstrated its ability to meet corporate funding needs, he adds, particularly when conditions are relatively stable and investor demand runs strong.
Take AT&T, for example. The telecom launched a four-part note-offering totaling $5 billion, with proceeds earmarked for general corporate purposes including refinancing maturing debt and funding pending acquisitions. BNP Paribas, Bank of America, Citigroup, JPMorgan, and Mizuho served as arrangers.
The same week, another group of global banks including Deutsche Bank, Goldman Sachs, and HSBC led an $18 billion bond deal for Oracle Corp.
The flurry of deals marks a shift from the previously cautious landscape, where uncertainty around interest rates, inflation, and President Donald Trump’s intermittent tariff announcements had restrained bond issuance and widened credit spreads.
Yet, US issuers are not the only ones capitalizing on cheaper debt. Reuters pulled data from LSEG to show that issuance of “Maple bonds” by foreign borrowers reached $16.32 billion as of Sept. 25, surpassing last year’s $16.28 billion and outpacing all of 2024, which totaled $13 billion. More aggressive Bank of Canada policy, along with low yields and tight risk premiums in both the US and Canada, is creating a favorable environment for companies to invest and expand while investors remain eager to provide capital.
“We think strong corporate bond issuance can continue,” Elfner says. Lower borrowing costs will also allow for corporates to refinance debt and, perhaps, undertake projects that may have been mothballed due to higher financing costs.
Global Finance presents its 32nd annual list of the best banks worldwide.
If one word described the global economy in 2024, it would be “resilient.” Growth was up slightly, with global GDP growth hovering around 3.1%, while the pace of global inflation slowed to approximately 5.8% from 6.8% the previous year, according to the International Monetary Fund.
Although many thought a financial crisis was imminent, none materialized as businesses continued to focus on strengthening and diversifying their supply chains, implementing digitalization strategies, and responding to rising geopolitical tensions.
In this environment, French banking giant Societe Generale took numerous crowns, winning as Global Finance’s World’s Best Bank, World’s Best Frontier Market Bank, World’s Best Transaction Bank, and World’s Best Supply Chain Provider—Bank awards.
Throughout 2024, the financial group generated €4.2 billion in group net income (up 69% from the previous year) on €26.8 billion in revenue (up 6.7%) through its 26 million clients worldwide while streamlining its core businesses and divesting others.
The Return Of The M&A
The bright spot for 2024 was the return of M&A.
“On the surface, it may appear difficult to remain sanguine after anticipating a full market resurgence for several years,” wrote Jake Henry and Mieke Van Oostende, senior partners at McKinsey, in the firm’s 2025 annual M&A report. “But many of the dynamics that stymied dealmaking for the past three years, including some that limited 2024 global deal value and volume to roughly the average of the past 20 years, are receding.”
According to data from WTW’s Quarterly Deal Performance Monitor, 15 megadeals worth more than $10 billion each closed last year, a 36% increase from 2023, and there were 162 deals valued between $1 billion and $10 billion, for a 21% increase. The number of deals totaling between $100 million and $1 billion grew approximately 15% over the same period.
Although not the “full throttle comeback that many dealmakers hoped for in 2024, performance improved (in some regions, significantly),” the McKinsey report noted. “Global dealmaking was curbed by a variety of pressures and delivered moderate returns, with deal value up 12% to $3.4 trillion.”
The year’s M&A deals were not evenly distributed geographically, however, according to WTW. North America saw the most deals closed, with 361, up 14% from the previous year. Europe notched 155 deals, up 32% from 2023. In the Asia-Pacific region, companies concluded 163 deals, representing a 5% increase.
Overall, Global Finance’s Best Banks led the way in helping to grow the M&A pipeline.
Along with the World’s Best Bank award, global honors this year include recognition as Best Corporate Bank, Best Consumer Bank, Best Banks Worldwide in Emerging and Frontier Markets, and Best Sub-Custodian Bank. All are being announced here for the first time.
Previously announced honors include Best Global Transaction Bank, Best Bank for Sustainable Finance, Best Islamic Financial Institution, Best Investment Bank, Best Cash Management Bank, Best Trade and Finance Providers, Supply Chain Provider—Bank, Best Foreign Exchange Provider, Best Private Bank, and Best SME Bank.
Methodology
The editors of Global Finance, with input from industry analysts, corporate executives, and technology experts, selected the global winners of the World’s Best Banks 2025 using information provided by entrants as well as independent research based on objective and subjective factors.
Entries are not required, but experience has shown that the information supplied in an entry can increase the chances of success. In many cases, entrants present details that may not be readily available to the editors.
Judges considered performance from January 1 to December 31, 2024. Global Finance applies a proprietary algorithm to narrow the list of contenders and assign a numerical score, with 100 signifying perfection. The algorithm weights a range of criteria for relative importance, including knowledge of the sector, market conditions and customer needs, financial strength and safety, strategic relationships and governance, capital investment and innovation, scope of global coverage, size and experience of staff, risk management, range of products and services, and use of technology. The panel tends to favor private-sector banks over government-owned institutions.
The winners in each category are those banks and providers that best serve the specialized needs of corporations engaged in global business.
Slawomir Krupa, CEO
World’s Best Bank 2025
Societe Generale
In a year of economic uncertainty, persistent inflation and supply chain reorganization, Societe Generale stood head and shoulders above its global competition, earning the titles of World’s Best Bank and World’s Best Frontier Market Bank.
Its three core businesses—French Retail Banking; Global Banking and Investment Solutions; and Mobility, International Retail Banking, and Financial Solutions—generated €4.2 billion in group net income (up 69% from the previous year) on €26.8 billion in revenue (up 6.7%).
Throughout the year, Societe Generale combined strategic investments in cutting-edge technology, sustainability, and innovation with a drive to streamline core businesses while divesting non core areas.
The French banking giant has leveraged AI in approximately 420 use cases across its operations to enhance customer support via its Sobot chatbot and Elliot callbot, personalize advice for private banking clients using its Synoé platform, and numerous middle- and back-office operational, security, and risk management functions.
The bank surpassed its goal of contributing €300 billion to sustainable finance by 2025, a year ahead of schedule. It has since raised its target to €500 billion, comprising €400 billion in financing and advisory services and €100 billion in sustainable bonds, by 2030. Sustainable finance deals, including acting as the mandated lead arranger for a $1.2 billion green loan that enabled ReNew Power to develop a combined wind, solar, and battery storage infrastructure in its home market of India, have helped Societe Generale maintain a leading global role in this field.
Among the new offerings the bank debuted in 2024 were a joint venture with AllianceBernstein, dubbed Bernstein, which combines the two companies’ equity research, sales, and trading operations.
Societe Generale meanwhile strengthened its capital base by simplifying its business model, improving efficiency and increasing existing synergies through a series of strategic divestitures. It exited its private banking operations in the UK and Switzerland with the sales of SG Kleinwort Hambros and Societe Generale Private Banking Suisse and continued divestment of its African subsidiaries in Benin, the Democratic Republic of Congo, Madagascar, and Morocco.
Despite these changes, Societe Generale remains the leading player in frontier markets through its Global Transaction Banking network, which spans more than 50 countries and offers a range of integrated services including managing cross-border payments, liquidity, and trade finance. Leveraging its expertise in sustainability, the bank has partnered with the International Finance Corporation to accelerate financing of energy transition projects in developing markets through its Solar Pack initiative.
Javier Rodriguez Soler, Global Head of Sustainability, Corporate & Investment Banking
World’s Best Corporate Bank 2025
BBVA
BBVA claims the title of World’s Best Corporate Bank for the third consecutive year, having expanding its market share and deal leadership during 2024. It led 86 deals across telecommunications, energy, infrastructure, consumer goods, and services for a total volume of €5.16 billion. Among these was the €6.6 billion underwriting of MasOrange, formed by the merger of the telecom companies Orange and MasMovil.
BBVA also reinforced its commitment to sustainable finance, leading the €383 million project financing of Repsol Renovables’ Gallo portfolio, a 777-megawatt solar and battery storage facility spanning Texas and New Mexico as well as the refinancing of the Monegros wind project in Aragón. Additionally, the bank directed €51.1 billion into sustainable financing throughout the year.
All told, BBVA’s Corporate & Investment Banking division earned some €5.8 billion in revenue in 2024, up 27% from the previous year, while increasing its net attributable profits by 30%.
Helping to fuel its growth has been the bank’s strategic investment in its infrastructure and technology partnerships. BBVA’s internal AI Factory has applied AI and machine learning to enhance customer experiences and streamline internal processes.
Challa Sreenivasulu Setty, Chairman
World’s Best Consumer Bank 2025
State Bank of India
Continued investment in digitalization, a growing global footprint, and innovative offerings earned the State Bank of India (SBI) its first World’s Best Consumer Bank award. Building on a history that dates back to 1806, SBI continues to enhance a menu of digital offerings that serve 132 million internet banking and 287 million mobile banking clients.
SBI reimagined its You Only Need One (YONO) banking and lifestyle mobile app in 2024 with its midyear announcement of YONO 2.0. The latest version enables users to initiate transactions at an SBI branch and complete them on the app, and vice versa, and features a more modular architecture for faster processing and transaction speeds. Other innovations include the debut of a tap-and-pay function in its BHIM SBI personal banking app, which leverages India’s Unified Payment Interface, as well as an end-to-end digital loan application for the bank’s Surya Ghar Loan scheme for the installation of rooftop solar collectors.
Despite its stress on digitalization, SBI also invested in 600 new branches across India to improve accessibility for underserved rural and semi-urban areas: more than fourfold the number of branches it opened the previous fiscal year.
Jamie Dimon, Chairman and CEO
World’s Best Emerging Markets Bank 2025
JPMorgan Chase
One of the largest financial institutions globally, JPMorgan Chase (JPMC), wins the World’s Best Bank for Emerging Markets award for its broad set of offerings, continued focus on serving emerging markets, and overall expertise.
Although many of its competitors are pulling out of emerging markets, JPMC is expanding into them. It plans to enter new African markets or deepen its existing presence there “every couple of years or so,” Chairman and CEO Jamie Dimon told Reuters last October. The bank set up a representative office in Kenya that month and new offices in Côte d’Ivoire later in the year.
JPMC had a strong 2024, raising more than $400 billion in emerging market debt, including on a rising number of debt-for-nature transactions that enable countries to repurchase existing debt on better terms and use the savings to benefit the environment. El Salvador utilized the structure to secure an approximately $1 billion loan from the bank, then used it to repurchase $1.03 billion in a tender offer. The savings were allocated to improve and protect the country’s Lempa River watershed.
Besides raising debt, JPMC’s advisory services were strengthened by the launch of a Center for Geopolitics, which provides expert analysis of geopolitical trends aimed at helping clients navigate the complexities of the global economy, manage risks, and identify new opportunities.
Emerging market clients also benefit from the bank’s global infrastructure and sizable investment in its technology platforms, JPMC says. Access to these cutting-edge systems gives clients a more efficient, secure, and convenient way to manage their finances and business operations.
World’s Best Frontier Markets Bank 2025
Societe Generale
Frontier markets are playing an increasingly important role in the global economy, as they offer significant growth, albeit with smaller capitalization and higher volatility. Banks serving frontier markets must provide a comprehensive blend of corporate and commercial banking services that go beyond lending and deposits to more complex offerings, such as trade finance, securities servicing and sustainable finance. French banking giant Societe Generale is a leader across the board, with its broad range of offerings, and has beaten out its competitors to win this year’s World’s Best Frontier Market Bank award.
The bank, with over 160 years of experience, boasts a global network spanning more than 50 countries and offers highly integrated solutions for trade finance, cross-border payments, and liquidity management.
Through increased investment in artificial intelligence and other technologies, the bank has automated numerous processes and digitized others. In securities servicing, the company has leveraged generative AI, smart workflows, and robust data management to provide an enhanced client experience for its corporate and institutional clients, resulting in a doubling of client recommendation rates and increased participation in satisfaction surveys.
Meanwhile, Societe Generale has made great leaps in sustainable finance. The bank has committed 300 billion euros to sustainable finance by 2024 and introduced a new target of 500 billion euros by 2030, with a focus on decarbonization in sectors with the highest carbon-intensive emissions. To further strengthen its position, the bank also launched its Sustainable Global Transaction Banking Framework, which enables businesses to assess and monitor the environmental and social impacts of their working capital, trade, and liquidity management activities.
Societe Generale also signed a collaboration framework agreement with the World Bank’s International Finance Corporation to accelerate sustainable finance through investments in clean energy, water, and other infrastructure projects, as well as in agribusiness and women entrepreneurs.
World’s Best Transaction Bank 2025
Societe Generale
Societe Generale excels at navigating the complexities of realtime payments, offering rigorous testing and dedicated IT support including client training. While clients expect similar functionalities for domestic and cross-border payments, Jean-François Mazure, head of Cash Clearing Services, notes that they struggle to differentiate. Converging both payment types, which hinges on interlinking financial market infrastructures, is critical, he argues.
Numerous market initiatives, including immediate cross-border payments (IXB) between the US and Europe, face significant hurdles, Mazure warns: “It is truly complex from a compliance and legal framework standpoint. So, for the moment, none of these initiatives has succeeded in scaling up.”
To interconnect real-time payment systems, he says, the most likely way forward is to adopt the “one leg out” (OLO) principle already in operation for transactions involving one bank inside the European Economic Area and one bank outside. But all parties will need to continue to align for interconnectivity to be achieved, he adds. OLO’s success hinges on compliance with ISO 20022 standards as well as resolving commercial and liability challenges across various schemes.
Mal Cullen, CEO
World’s Best Sub-custodian Bank 2025
CIBC Mellon
CIBC Mellon continues to refine its comprehensive asset-servicing business model, emphasizing innovation, process efficiency, and client service. Jointly owned by Bank of New York Mellon and Canadian Imperial Bank of Commerce, CIBC Mellon leverages CIBC’s local knowledge in the Canadian market combined with BNY’s technology and global custody infrastructure to serve institutional clients in Canada and globally. The combination has yielded consistent growth; assets under administration recently surpassed C$3 trillion ($2.2 trillion).
Ongoing priorities focus on broadening customer relationships and services through continual investment in IT and partnerships with the fintech sector, aimed at providing greater levels of core service automation along with enhanced transaction transparency and execution efficiency. This includes better straight-through processing for a seamless and secure transmission of client data, investment in pre- and post-trade communication services for trade matching and routing, and tracking of the settlement lifecycle.
Project Fuel, an enterprise-wide data and innovation initiative, is focused on transforming the client experience by equipping customers with tools to manage and analyze data more effectively, improving transparency and accelerating decision-making.
CIBC Mellon continues to enhance its online reporting platform, NEXEN, which integrates data and predictive analytics to provide clients with faster, real-time cash position and activity reporting through an improved user interface. Digital assets are expanding in the market; the bank is collaborating with stakeholders in Canada and globally and with BNY’s digital-asset unit to develop offerings in this area. This involves bolstering its data analytics capabilities and digital infrastructure through enhanced customization, automation, and service flexibility with a view to assisting clients to launch new offerings including alternative-asset ETFs and cryptocurrency funds.
Su Shan Tan, CEO
World’s Best Bank for Sustainable Finance 2025
DBS
DBS aims to green Asia’s economy by acting as an environmental-transition catalyst for anchor companies, mid-caps, and SMEs. The bank provides transition-related financing for these organizations at the corporate, project, and asset levels. Among its offerings are green, sustainability-linked, and social loans and bonds, along with carbon-market financing and other products.
Standout transactions in 2024 included a loan to LG Energy to construct a plant in Poland that manufactures batteries used in electric vehicles. A HK$3 billion (about $385.7 million) loan to the Hong Kong Housing Society will help create affordable residential projects. A S$300 million (about $224.2 million) bond will help Singaporean developer CapitaLand develop projects in alignment with green finance frameworks.
In addition, the bank develops analytical tools to track and analyze climate data and engages with industries—notably in the power, automotive, steel, shipping, and real estate sectors—and policymakers to chart paths to a healthier environment.
Khaled Yousef AlShamlan, Group CEO
World’s Best Islamic Financial Institution 2025
Kuwait Finance House
Kuwait Finance House (KFH) is recognized as the World’s Best Islamic Financial Institution for strengthening its franchise in multiple markets, for financing innovation, and for its overall operating performance. KFH provides services to customers in the Middle East, Europe, and Asia through extensive distribution channels, with an increasing emphasis on digitalization. The bank has subsidiaries in Kuwait, Turkey, Egypt, Bahrain, Iraq, Malaysia, the UK, and Germany.
KFH has made significant strides toward digital transformation in risk management, adopting the latest advancements in AI, machine learning, and advanced analytics to enhance risk measurement and monitoring. Tam Digital Bank, KFH’s digital bank in Kuwait, recorded strong customer numbers and transaction growth in 2024.
The bank’s financial profile is noticeably sound; a successful capital management program yielded a capital adequacy ratio (CAR) of 19.9%, considerably exceeding regulatory requirements and promising to support growth in the coming years. Return on average assets is good at 1.8% and loan asset-quality metrics are robust. KFH’s Islamic banking products and services cover commercial, retail, and corporate banking as well as real estate, trade finance, project finance, asset management, and investments.
World’s Best Investment Bank 2025
BofA Securities
Against the backdrop of thriving global stock markets and rising debt-finance activity, Bank of America (BofA) Securities’ global operations achieved an impressive 43% year-over-year jump in investment banking fees as of the fourth quarter of 2024.
The numbers were buoyed mainly by the bank’s three big areas of operations: North America, Latin America, and Europe, where the bank controlled a commanding 8.3%, 9%, and 4.4% of total investment banking fees, respectively. That boosted revenue for the full year to nearly $5.5 billion, according to Dealogic, representing around 6.2% of the global investment banking market.
BofA also scored big on M&A despite somewhat subdued activity in the field, serving as lead buy-side advisor on the $1.9 billion acquisition of Hawaiian Airlines by Alaska Air. The bank also acted as sole buy-side financial advisor on Keurig Dr Pepper’s $990 million acquisition of energy beverage company GHOST.
Brian Moynihan, Chairman and CEO
World’s Best Bank for Cash Management 2025
Bank of America
Reflecting the demand for consistent global visibility and control, Bank of America saw the app version of its CashPro platform surpass $1 trillion in payment approvals in 2024. CashPro allows clients to manage treasury operations across multiple channels: online, app, APIs, and file-based interfaces.
“One thing that distinguishes CashPro is its global consistency,” says Tom Durkin, head of CashPro at BofA’s Global Payments Solutions, “so that when a company’s finance team has team members in different countries, they’ll all have access to the same tools, views, and processes. The advantages are obvious: better visibility and control and no additional financial outlays.”
Much of CashPro’s success is due to BofA’s close engagement with clients, Durkin notes, particularly those who participate in client board meetings.
“This dialogue is so important,” he says. “We do deep dives into our clients’ priorities and challenges, we present options for new functionality and discuss whether those innovations are going to solve their real-world issues.”
The bank’s strategic vision for CashPro “will always be to provide a best-in-class platform that is personalized, predictive, and proactive,” he adds. “One recent demonstration is how we’ve embedded CashPro into our clients’ own systems through the CashPro Network, a collaboration with third-party providers allowing quick, easy connection to the bank with little to no investment.”
World’s Best Trade Finance Provider 2025
BNP Paribas
Offering global trade finance in 44 countries and more than 100 trade centers across more than 60 countries gives BNP Paribas a strong geographical foundation for its offering of seamless trade finance solutions across borders, supporting client growth throughout the entire trade cycle.
A broad range of traditional trade finance and working capital management solutions and substantial investment in technology, including web-based e-banking platforms like Connexis Guarantee, Connexis Trade, and Connexis Supply Chain, helps the French multinational support clients with complex international trade operations. Leveraging digital solutions, such as blockchain and AI, streamlines processes, improves efficiency, and enhances customer experience.
In 2022, BNP Paribas launched a program using AI to streamline the processing of trade finance documents and improve traceability for its clients. Since then, the bank has rolled the program out to 15 countries and processed 40,000 transactions.
“We have implemented AI technology to help classify, extract data, and automate controls. This is live today and being further expanded in terms of functionalities,” says Jean-François Denis, global head of Trade Solutions. “Bank guarantees also present the potential for AI usage, such as verifying guarantee clauses against acceptable clauses, policies, and guidelines. Anti-money laundering is yet another area where we have deployed AI.”
World’s Best Supply Chain Finance Provider – Bank 2025
Societe Generale
The French banking giant introduced a new workflow product in 2024 that includes external data and better analyzes clients’ working capital needs. The new offerings include peer comparison of key receivables and payables financing elements.
On the sustainability front, Societe Generale offers an ESG version of its full range of solutions, including green or social-focused factoring, forfaiting, and sustainability-linked supply chain financing (SCF). The bank also offers a dedicated and simplified solution for retail clients and SMEs based on their ESG rating.
Finally, establishing connectivity to CRX Markets, the marketplace for working capital finance, has improved support for SocGen’s largest clients, helping to grow the bank’s SCF programs.
World’s Best Global Foreign Exchange Bank 2025
UBS
Upon completing its megamerger with Credit Suisse in May 2024, UBS leveraged its already best-in-class corporate banking, foreign exchange (FX), and product offerings for a record-breaking year. Not only did its global operation more than double analysts’ expectations in the third quarter of 2024, booking a massive $1.4 billion in net income, but it did so with a significant contribution from its corporate banking division, which saw revenue jump by more than 8% year over year.
Those numbers received a massive boost from UBS’s thriving FX operation, which averaged over $125 billion in daily electronic FX trades, with more than 2,500 active global clients. The bank posted substantial growth across several geographies and currency pairs. Among the highlights: solid profitability growth in Middle Eastern and Northern African currencies and a massive 40% market-share increase in Scandinavian currencies. In Asia, UBS’s continued efforts to improve its already top-tier suite of electronic FX capabilities paid off handsomely in China and Singapore, where it has doubled down on its data center improvement efforts.
On the technology front, UBS further expanded the limits of the global FX market, hosting the world’s first intraday FX swap in a regulated venue in July. The bank recently launched its blockchain-based multicurrency payment solution, UBS Digital Cash, processed through its flagship FX Engine Room, enhancing its overall FX offering.
World’s Best Private Bank 2025
J.P. Morgan Private Bank
For the fifth consecutive year, J.P. Morgan US Private Bank has excelled at adapting to shifting macroeconomic conditions, delivering best-in-breed results to its clients. Riding the phenomenal rebound in global investing built on improving monetary conditions and subsiding inflationary pressures, the bank saw client assets rise by 24% over the previous year, totaling more than $2.5 trillion under supervision.
Against this backdrop, revenues increased 18.5%, with pretax income showing an even more significant 36% boost year on year.
On the product side, J.P. Morgan made significant strides at integrating advanced AI tools, including JPMorgan Chase’s Connect Coach and the Chase Connect mobile app, into its award-winning product portfolio. These include risk analytics and portfolio management services that serve as a benchmark for many in the industry. Alongside these product advances, the bank added over 300 expert advisors to its team, helping it attract more than 5,400 new clients.
Roberto Sallouti, CEO
World’s Best SME Bank 2025
BTG Pactual Empresas
BTG Pactual Empresas boasts an SME lending portfolio that reached R$22.1 billion (approximately $3.9 billion) in the first quarter of 2024, its SME credit book growing 52% year on year. SME business now accounts for 12% of BTG Pactual’s total portfolio.
The bank attributes its SME growth in part to its digital capabilities. Its digital platform offers an integrated portfolio of SME products and services, providing access to the bank’s credit, guarantee, insurance, investments, foreign exchange, and derivatives products. Associated services accessible via the platform include creation of invoices payable by QR code; online invoicing; instant electronic bank transfers; open banking; payments to suppliers, tax authorities, and utilities; budgeting and categorized spending services; and digital receipts. The platform offers more than 45 integrations, including Telegram and Google Workspace, along with a extensive range of productivity improvement products.
Speed is a crucial benefit. The platform enables BTG to disburse 95% of its loan funds in less than 10 minutes, the bank says, 16 times faster than its competitors.
Agriculture is a big part of the Brazilian economy, and BTG offers services tailored to the sector including credit lines for agricultural products (fertilizers, pesticides, seeds); equipment financing; and infrastructure financing for the construction of silos, warehouses, and other facilities.
Activities addressing ESG issues are also important to BTG. Of its loans to corporations and SMEs, 72% are subject to social, environmental, and climate-risk analysis, in line with international best practices. R$8.9 billion of its lending portfolio aligns with the bank’s sustainable financing framework.
Italian banking group UniCredit has delivered a robust third quarter, underscoring its position as one of Europe’s stronger lenders.
“UniCredit delivered yet another set of record results, with net revenues up 1.2% and costs down 0.1% versus last year,” said CEO Andrea Orcel in a statement.
Net profit came in at €2.6 billion in the third quarter, up 4.7% year-on-year, and above a company estimate of €2.4bn.
Over the first nine months of the year, the bank’s net profits rose by 12.9% to €8.7bn.
“These results reflect disciplined execution, and I am confident that we will continue to build sustainable value for all stakeholders,” said Orcel.
UniCredit also reaffirmed full-year 2025 net profit guidance at €10.5bn and said it planned to distribute at least €9.5bn to shareholders.
Why this matters
In a European banking sector facing low growth, investor pressure, and regulatory hurdles, the results are significant for several reasons.
First, UniCredit’s combination of revenue growth, cost control, and low credit impairments suggests a resilience not always seen among its peers.
Second, the reaffirmation of strong guidance signals management confidence in execution through to year-end despite macroeconomic uncertainties in European and global markets.
Thirdly, the capital position and shareholder-return commitments indicate that the bank is in a position to manage risk and reward investors.
Europe’s banks are navigating reduced margins, regulatory costs, and lacklustre loan demand. Against that backdrop, UniCredit’s cost-income ratio of 37% in the quarter is a standout.
The lender also noted that its medium-term ambitions remain unchanged, standing by a net profit target of above €11 billion for the full-year 2027.
What to watch
Key to delivery will be how UniCredit handles a potential slowdown in areas such as net interest income, which fell 5.4% year-on-year in the quarter, and how it sustains its cost-efficiency edge.
The impact of wider economic weakness in Italy, Germany, and Central and Eastern Europe, all countries with strong UniCredit presence, remains a risk.
Additionally, conversion of its medium-term plans into reality will require continued disciplined execution. This is especially the case as the bank pursues strategic initiatives such as life insurance policy changes in Italy and its takeover of Commerzbank.
UniCredit has built a 26% stake in the German lender over the last year, although Orcel’s advances are facing fierce opposition from the government in Berlin.
