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 asset-backed bonds.
- There was a slowdown in the rate of growth of international banking business in 1990, particularly in the interbank market.
- Although its share slightly declined, Japan maintained its position, just ahead of London, as the largest international banking centre.
- Primary activity in the international capital markets, at $494 billion, was broadly unchanged from 1989. There was a substantial shift in instrument composition, with an increase in floating-rate notes offsetting a sharp decline in equity-related issues.
- Falls in asset prices and recessionary pressures in many major economies led to a renewed emphasis among financial intermediaries on profitability and credit quality.