This article continues the annual series on developments in international banking and capital markets. The article has a short overview, followed by sections on developments in international banking and capital markets. There is a feature on international equities.
- The growth of international banking business accelerated slightly in 1989 with evidence of increased activity within Europe. Non-bank business grew more rapidly than interbank business.
- Japan maintained its position as the largest international banking centre in terms of assets.
- Primary activity in international capital markets remained buoyant, owing to the strong issuance of equity-related bonds by Japanese borrowers. In other sectors of the eurobond market, profitability remained low, reflecting the intensity of competition.
- Other important developments during the year included the introduction of US-style syndication procedures to the eurobond markets; the launch of a 'global' bond by the IBRD; and the extension of credit ratings in the eurocommercial paper market following a number of defaults.