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The 4th Annual Global Financial Markets Forum (GFMF) concluded with record number of attendees.
More than 700 delegates attended the two-day conference offering critical news and information on various issues such as Abu Dhabi’s development, proposed financial regulations and Euro zone debt challenges. The 2012 GFMF, which is organised annually by the Financial Markets Division of the National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, highlighted Abu Dhabi’s rising influence in global affairs.
“The very influential and prestigious speakers at the 2012 GFMF offered fresh and critical analysis and news on very important issues which provided helpful information to the delegates and established this annual forum as an authoritative conference on economics and market fundamentals,” said Mahmood Al Aradi, the Senior General Manager of NBAD’s Financial Markets Division.
Paul Volcker, former chairman of the US Federal Reserve System and economic advisor to President Barak Obama, served as a 2012 GFMF keynote speaker. In his speech Mr. Volcker addressed the proposed set of rules, known as “Volcker Rule.”
Mr. Volcker said the proposed regulations, which restrict commercial banks from proprietary trading, would not return the American banking system to the restrictions of the Glass-Steagall Act that prevented banks from engaging in trades. The new proposals would allow banks to underwrite securities on behalf of clients.
Mr. Volcker began his keynote speech by noting that NBAD is ranked one of the World’s 50 Safest Banks and added that NBAD could be “justifiably proud” of an approach to banking that puts safety first.
“This is why I like to model my speech on the accomplishments of the National Bank of Abu Dhabi,” Mr. Volcker said. “NBAD must be in compliance with Volcker Rule.”
Michael H. Tomalin, the Group Chief Executive, confirmed that even during the 2000s, NBAD did not buy speculative financial products and used its balance sheet to develop relationships.
“The National Bank of Abu Dhabi used its balance sheet to support customers,” Mr. Tomalin said.
On the second day of the Forum, Axel Weber, former president of Deutsche Bundesbank, the German Central Bank, from 2004 to 2011, and a member of European Central Bank Governing Council, said European banks need to make up a shortfall of 115 billion euro (US$153.4 billion) by digging into their balance sheet.
Mr. Weber, who is also the perspective chairman of UBS board, said there will be a rise in asset prices to match the rising liquidity in the zone. “There is no alternative to fiscal austerity,”
Mr. Weber said.
David McWilliams, an economist, broadcaster and author, offered a different perspective on the causes and the solution to fix the crisis.
Instead of imposing harsh fiscal policies on debt-challenged nations - Portugal, Ireland, Italy, Spain and Greece, collectively known as PIIGS - the stronger nations, Germany and France, should provide relief, Mr. McWilliams said.
“Richer nations should take responsibility for the weaker nations,” Mr. McWilliams said. By not helping PIIGS, the stronger countries are “destroying the very union that was supposed to be a family of nations.”
He also said the Euro zone crisis presents an opportunity for the rich GCC nations. “European banking assets will eventually be sold very cheaply and the sovereign wealth funds should be able to buy (at bargain,)” he said.
The Forum also allowed for several panel discussions. The Panel discussing the “ UAE Market Fundamentals,” consisting of Mr. Tomalin, the Group Chief Executive of NBAD; Tony Douglas, chief executive officer of Abu Dhabi Ports Company (ADPC); Paul Reynolds, managing director of Rothschild; and Ricky Thirion, vice president of treasury of Etihad Airways; agreed that the UAE has a competitive advantage regionally and globally.
“I’m very positive about 2012 and prospects for 2013 are even better,” Mr. Tomalin said.
The sponsors of the 2012 GFMF are ADS Securities, Al Hilal Bank, Bloomberg, BNY Mellon, Barclays Capital, BARX, EMC Corporation, HSBC, GFI, GHC, Global Banking and Markets, Gulf Petrochem, Gulf Pharmaceutical Industries (Julphar), ICAP, ITS Group, Lari Exchange, Murex, Rashed Al Makhawi, Saxo Bank, Superderivatives, and Thomson Reuters. Etihad Airways is the Official Airline of 2012 Sponsor. The Media Partners are Al Ittihad newspaper and Oxford Business Group, and CNBC Arabia.
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