Trump's Presidency to Create 'Interesting Ructions' in Global Trade
The new US administration led by President Donald Trump will trigger "interesting ructions" in global trade flows, according to Standard Chartered CEO Bill Winters.
Speaking at the World Economic Forum in Davos, Winters highlighted China's substantial export surplus as a potential target for tariffs. "We'll see what comes through in terms of tariffs," he said.
Winters predicted that large globally-focused banks would capitalize on the disruptions by bridging markets, while local banks could face challenges.
In addition to the shifts caused by the US administration change, banks are grappling with new regulations amid global growth priorities.
"Regulation has been stifling," said BNY CEO Robin Vince. "It's against the purpose of governments trying to enable growth for their countries."
The Bank of England recently delayed stricter bank capital rules by a year to align with the US approach under Trump. The European Union has also indicated a review of its options.
"This is a time to reassess what works in regulation," said Winters, expressing skepticism about the implementation and effectiveness of Basel 3.1 bank capital regulations.