Economic growth in China has slowed for the second quarter, fuelling speculation that the biggest growing economy in the world is just about to hit the ‘great wall.’ Could this global powerhouse be joining an already burgeoning club of failed economies? Could this be a trigger point for going into another recession, but far deeper? Is Armageddon a better option?
Sympathy may be lost from foreign governments as China still refuses to allow its currency, the Yuan, to appreciate against freely-traded currencies which makes it harder for other countries to compete with Chinese exports.
To dispel these – some would say scare mongering – rumours, the FST 20, which consists of the 20 leading figure heads in finance, were called to congress in California this week to discuss how the financial community can unify to avoid a repeat of 2008.
The FST 20 meeting was held at Half Moon Bay and was chaired by Laurie Smith, CTO of Morgan Stanley. Notable attendees included Charles Abonnel, MD of BNP Paribas, Mats Anderson CTO of NASDAQ and Bill Chenevish, Vice Chairman Ops for US BANCORP.
“In a previous FST 20 session earlier this year, we explored the key themes impacting financial services including risk management, innovation, relationship management, and restoring trust and confidence. At that time, the backdrop was an economic recovery which was just on the horizon. While there have been a few positive signs since that time, the horizon now is in fact anything but clear,” said a spokesman for the FST Committee.
Government officials have seen a series of macroeconomic errors and believe that growth is more fragile than predicted by data specialists. It has also been reported by the committee that productivity and government debt is healthy and although the pace of recovery has slowed it has by no means stopped.
In order to adapt and compete, the financial industry needs to continue to embrace strategies around streamlining processes, cost cutting, and improving customer service. IT is a central component and its role has become more important than ever to ensure success.
One topic concerned traditional Relational Database Management System (RDBMS) technologies which have failed to solve challenges presented by the growing volumes of complex financial instruments since the crash discussions about the new class of applications for derivatives, threat analysis, and compliance.
“Traditional relational database technology has solved many of the problems of the past few decades. But a new class of problems has arrived – problems requiring new technology for 21st-century issues.” said David Kellogg, CEO at MarkLogic
Such a cohesive response from the industry will no doubt help to stable the ship; they clearly fear the embarrassment of further bailouts.
Jake Mazan writes for Next Generation Online