Dan will have little time to relish his victory. Strong support for the nationalist right will remain a concern as the new government tackles major economic problems including the EU’s highest bud- get deficit at around 9% of GDP and falling living standards.

Political instability in recent months has damaged Romania’s profile in international capital markets—Fitch Ratings assigns it a BBB- with a negative outlook—and fiscal reform will be tougher given Dan’s commitment to eventually raise defense spending to 3.5% of GDP.

In his inauguration speech on May 26, Dan spoke of the need for change, arguing that the state was spending too much, and that inequalities within Romania—Southeast Europe’s largest economy with some 19 million people—needed to be tackled and institutions reformed. The new president said he wants to look to the future rather than the past and restore faith in democracy.

“It is in the national interest to send a message of stability to financial markets,” he emphasized. “It is in the national interest to send a signal of openness and predictability to the investment environment.”

Dan’s first priority will be to assemble a government out of Romania’s deeply fractured political scene. “The most likely outcome is a moderate coalition … with the potential addition of the Save Romania Union,” says Orsolya Ráczová, associate fellow for the Center for Global Europe at GLOBSEC. “This would provide fresh impetus to implement reforms agreed with the EU.”

Meanwhile, conservative historian and populist candidate Karol Nawrocki beat centrist Warsaw mayor Rafal Trzaskowski in the second round of Poland’s presidential election by approximately 370,000 votes, or 1.78%, on June 1. His victory led Prime Minister Donald Tusk to call for a June 11 vote of confidence for his coalition government the next day. Nawrocki, a strong critic of Tusk and his policies, will likely not impact the government’s foreign and EU policy much. Still, it will make it far more difficult for the Prime Minister to implement his domestic agenda.

Jingye tried to close its loss-making Scunthorpe furnaces, which produce steel that is seen as economically and strategically vital to the national interest. Closure would leave the UK as the only leading European economy unable to make its own steel and dependent on cheap imports, notably from China.

British Steel’s long-term future remains unclear. The government said it will rescue the threatened 2,700 jobs and keep the furnaces burning with regular supplies of coking fuel—vital if the plant is to survive (if they cool, the plant becomes non-viable). It has also said it will continue looking for another buyer/partner.

BMI, a Fitch Solutions company, argues that the passing of the Steel Industry (special measures) Bill on April 12 “will most likely” lead to a nationalization of British Steel, given that the government now has de facto ownership of the long-term assets.

The crisis has laid bare the UK’s attitude to Chinese investment, particularly in industries seen as strategic. It follows the decision to force 35 UK telecoms providers to remove Huawei technology from their 5G services by 2027. It’s a big about-turn from 10 years ago, when the Conservative government eagerly sought Chinese investment and then PM David Cameron led several high-profile delegations to Beijing to deepen ties. China’s Foreign Ministry has said that politicizing the crisis could discourage Chinese investment elsewhere in the UK but Business Secretary Jonathan Reynolds has refused to rule out the possibility of sabotage by Jingye, saying its management at best amounted to neglect.

“Economic relations are definitely on a downward trajectory, with British Steel just the latest in a series of controversies,” says Charlie Robertson, head of strategy at investment fund FIM Partners.

At first glance, Bulgaria, one of the poorest countries in the EU, might not seem like an obvious destination for foreign direct investment (FDI), given its reputation for slow-moving bureaucracy, limited transparency, and political instability. And since 1985, the population has declined from about nine million to around 6.7 million, fueling a growing shortage of skilled labor.

Scratch below the surface, however, and the terrain is more intriguing.

A strategic location in southeastern Europe on the edge of the Black Sea, a well-educated workforce—despite the labor shortages—and an economy fully integrated with the European mainstream are all positives. So too are a flat corporate and income tax rate of just 10% and a local currency—the lev—tied by a currency board to the euro.

This tie to the euro has helped keep inflation low and links Bulgaria to the eurozone. Assuming Bulgaria can keep inflation within the 2.5%-3% band and the European Commission and European Central Bank give the green light later this year, it will join the eurozone in 2026.

“The recent growth story is one of the best in the region, along with Croatia,” says Radu Cracan, associate economist at the European Bank for Reconstruction and Development (EBRD), “led by domestic consumption and public sector wage increases; whilst construction, particularly in the residential sector in Sofia and other cities, has been booming. Mortgage demand jumped 30% year on year in January.”

Still, the March 19 arrest of Istanbul mayor Ekrem Imamoglu—widely seen as Erdogan’s chief rival and the opposition CHP’s likely candidate in the 2028 presidential race—shocked even seasoned observers. The charges, widely viewed as politically motivated, triggered mass protests, arrests, a media crackdown, and a ban on public gatherings.

The investor fallout was swift. “Billions fled Turkey on the news, and once again investors have learnt to fear the unexpected from Ankara,” said Charlie Robertson, emerging markets analyst at FIM Partners. Within days, Turkey’s stock market plunged, the lira tumbled, and by March 24 the Central Bank of Turkey (CBT) had burned through $26 billion trying to stabilize the currency.

Many were left wondering whether the crisis would derail the anti-inflation strategy being carefully pursued by Finance Minister Mehmet Simsek, Vice President Cevdet Yilmaz, and the CBT, which had successfully restored international confidence after the erratic policies before 2023. Financial officials have tried to steady nerves, saying policies would remain unchanged.

Muhammet Mercan of ING Bank says it’s important to keep things in perspective. He notes that the CBT responded to the volatility with a comprehensive strategy, including initiating lira-settled FX forward sales to address FX demand, raising the ON lending rate to 46%, suspending one-week repo auctions and issuing liquidity bills with maturities of up to 91 days.

“The Lira was the most attractive carry trade opportunity in emerging markets, leading to significant long positions by foreign investors, which were largely unwound. Nonetheless gross reserves of $171 billion as of March 14 remain sufficiently robust,” he says, arguing that the CBT possesses the tools to maintain FX stability.

Mercan is forecasting 2025 inflation of 28.4% and growth of 3.2%, but admits the recent volatility—compounded by the challenges added by US President Trump’s economic policies—“has increased the downside risks to the growth outlook.”

For sustainable finance, 2024 was the best of times and the worst of times.

On the positive side, issuance of impact bonds, sometimes called “GSS+” bonds (green, social, sustainability, and sustainability-linked instruments) totaled $1.1 trillion, according to provisional data published by the Climate Bond Initiative (CBI) in January.

However, on the red side of the ledger, the global coalition to contain climate change seemed to be fracturing by the end of the year. The 2024 US presidential elections brought to power the new Donald Trump administration; and Trump immediately ordered US withdrawal from the Paris Agreement, the world’s main treaty to fight climate change.

Given the need to more than double spending on clean energy supply, storage, and grid infrastructure to $300 billion/year for developing countries and $1.3 trillion/year for developed countries by 2035 “to keep the 1.5 target alive” (to achieve the goal of limiting global warming to an increase of no more than 1.5°C), “2024 failed to live up to what is needed,” says Gregor Vulturius, lead scientist and senior adviser on climate and sustainable finance at SEB.

Many market observers, however, still see the glass half full—especially looking beyond North America. “The outlook for 2025 is growth in sustainable finance,” says Timothy Rahill, a credit strategist at ING (Netherlands). “We ended 2024 with an increase over 2023. Of course, in 2021 and 2022, the levels of sustainable-finance issuance were very high, and outliers in the initial rush to do green issuance.”

According to CBI’s preliminary numbers, green bonds dominated in 2024, accounting for approximately 61% of the $1.1 trillion GSS+ debt accrued that year, compared with social and sustainability bonds (34%) and sustainability-linked bonds (1%).

Rahill explains that the EU’s Green Bond Standard (GBS), which took effect in December, should eventually push green bonds further. The standard aims to boost investor confidence by setting “a clear gold standard for green bonds” in the EU.

Still, “Many other issuers, such as sovereigns, view the rigorous new requirements [of the GBS] as a significant hurdle,” according to a late-January blog post by global investment firm Franklin Templeton. “They will likely adopt a wait-and-see approach to understand all potential implications before committing to issuing a [European green bond].”

According to Moody’s Ratings, overall bond issuance soared 35% in 2024, while sustainable bonds remained flat; and the latter’s share of the overall bond market fell from 15% in 2023 and 2022 to 11% in 2024.

However, Rahill predicts that in 2025, “Issuers will return their focus to green/sustainable finance issuance.” Moody’s mostly agrees, anticipating new green bond volumes rising to about $620 billion, 2% more than in 2024, “but eclipsing the previous record of $617 billion in 2021.”

Globally, “Social bonds will be constrained by a lack of benchmark-sized projects, while transition-labeled bonds and sustainability-linked bonds (SLBs) will remain niche segments as they navigate evolving market sentiment,” the ratings agency posted on its website.

For sustainable bonds, “Market conditions will remain the same as 2024,” says SEB’s Vulturius, who predicts growth of around 10%. According to SEB’s data, 2024 saw approximately $1.2 trillion in new sustainable bonds versus roughly $1.1 trillion in 2021, the previous record year, though SEB’s numbers, like CBI’s, are still preliminary.

What about the new administration in Washington, D.C.?

“I don’t expect the sustainable finance market will see a major headwind with the Trump administration. I still think we will see growth in 2025, even in US dollar debt,” says Rahill, though some corporations may not commit until the second quarter.

The CBI identified several factors that will encourage issuance in 2025, including new taxonomic definitions and increased spending by governments, development banks, and corporations on efforts at climate change impact adaptation and resilience. The CBI also expects increased visibility from insurance companies regarding sustainable finance in 2025.

Institutions focusing on sustainable finance in its various forms will have plenty to keep them busy in 2025. With that in mind, Global Finance presents its fifth annual Sustainable Finance Awards, with winners from seven regions and 53 countries, territories, and districts; and global honorees in 14 categories.

Global and regional awards require submissions detailing hard metrics of ESG activity, such as year-over-year growth in sustainable finance transactions or sustainable financial instruments as a percentage of total portfolio. Softer metrics also required include goal alignment with leading ESG norms or innovative product development. Entries were not required for country awards, which were judged by the editorial team’s independent research. Evaluation criteria includes governance policies and goals, environmental and social sustainability financing achievements, industry leadership, and third-party assessments. This awards program covers activities from January 2024 to December 2024. There was no fee to enter.

DBS is striving to green Asia’s economy by acting as an environmental-transition catalyst for anchor companies, mid-caps, and small and midsize enterprises (SMEs). The bank provides transition-related financing for these organizations at the corporate, project, and asset level. Among these offerings are green, sustainability-linked, and social loans and bonds, along with carbon-market financing and other products.

Standout transactions in 2024 include a loan to LG Energy to construct a plant in Poland for the manufacture of batteries used in electric vehicles. A 3 billion Hong Kong dollar (about $385.7 million) loan to the Hong Kong Housing Society will help create affordable residential projects. A 300 million Singapore dollar (about $224.2 million) bond will help the Singaporean developer CapitaLand build projects in alignment with green finance frameworks. In addition, the bank develops analytical tools to track and analyze climate data. It engages with industries (notably in the power, automotive, steel, shipping, real estate, and automotive sectors) and policy makers to chart paths to a healthier environment.       —Laura Spinale

Seeking to help Taiwan transition to a greener economy, CTBC Bank is working with Ørsted, the world’s largest developer of offshore wind-power projects, for the construction of the 61.3 billion Taiwan dollar (about $1.9 billion) Project Trinity.

This project consists of two offshore wind farms with turbines designed to withstand typhoons, seismic activity, and other ecological vagaries. Slated to be operational by the end of 2026, the farms—named Greater Changhua 2b and Greater Changhua 4—will generate 337 MW and 583 MW of electricity, respectively. This is enough to power roughly a million Taiwanese households.

CTBC Bank acted as mandated lead arranger and bookrunner for this syndicated loan. In that capacity, it identified and recruited potential lenders and other partners. These include Cathay Life Insurance, Taiwan’s largest insurance company. Project Trinity marked Cathay’s debut investment in Taiwan’s offshore wind market. CTBC Bank also recruited Taiwan’s National Credit Guarantee Administration to act as local export credit agency for the loan package.       —LS

Brazilian-headquartered BTG Pactual has been actively expanding its sustainable funding and transactions that have environmental and social benefits. This includes developing and managing new funds with strong sustainability and impact guidelines for financial products available in local markets.

BTG Pactual raised 542 million Brazilian reais (about $95.3 million) in its impact investing fund, which achieves social and environmental benefits with strong financial returns. The fund invests in small and midsize enterprises through private equity, focusing on educational technology for low-income populations, agribusiness software, alternatives to plastic packaging, and sustainable practices within the Brazilian açaí palm chain.

The bank has also focused on reforestation efforts through its Timberland Investment Group (TIG) subsidiary, which launched in 2021 and has raised $500 million toward its $1 billion target. The group wants to restore about 133,000 hectares (about 328,650 acres) of natural forest and establish sustainable commercial tree farms on an additional 133,000 hectares. As of the first quarter of 2024, TIG had $6.9 billion in assets and commitments and nearly 3 million acres under management throughout the US and Latin America.         —Andrea Murad

China Central Depository & Clearing Co. (CCDC) is a state-funded financial institution responsible for the custody, registration, and settlement of fixed-income securities in China. It functions as an important operations platform for the bond market, a supporting platform for the implementation of macroeconomic policies, a benchmark-services platform, and a key gateway for the opening up of China’s bond market. For example, CCDC provides issuance, registration, depository, settlement, valuation, collateral management, and information-disclosure services for green bonds, social responsibility bonds, and other sustainable finance products.

Its services can help issuers improve information-disclosure transparency and assist investors in identifying sustainable financial products. CCDC also promotes sustainable investment philosophy and otherwise contributes to the development of sustainable finance in China. As part of this work, it develops sustainable development-related indices, including China’s first green bond index, and has developed new standards for ESG evaluation.

—LS

The circular economy is about reusing, repairing, and recycling products and materials instead of simply disposing of them. Pulp and paper technologies provider Valmet has embraced circular economic principles in a big way. It’s now upgrading and extending the lifetime of its machines. The company has learned that modular machine design and smart engineering can often enable the same equipment’s use for other purposes. Valmet is also maximizing the use of recycled metals, reusing metals in its foundries.

Finland’s Nordea was the sole sustainability structuring adviser in Valmet’s March 2024 €200 million (about $206 million) green bond offering, making it easier for Valmet’s customers to manufacture sustainable products from renewable resources in the high-emissions pulp and paper industry. All eligible expenditures from the financing are aligned with the EU Taxonomy Regulation section 5.1 under transition to a circular economy.

—Andrew Singer

Raiffeisen Bank International (RBI) has long been considered a pioneer in green bond issuance in its native Austria. In 2018, it rolled out its green bond program aimed at encouraging sustainable lending across the RBI network of 11 Central and Eastern European (CEE) markets. Along with other banks, it participated last June as bookkeeper for Czech power company CEZ’s second green and sustainability-linked bond issue, worth €750 million ($772 million). The 4.25% bonds are due in 2032 and will be listed on the main market of the Luxembourg Stock Exchange. “With a total outstanding volume of [€2 billion] across 21 bonds in five currencies in Austria as of December 2023, RBI is the largest green bond issuer among financial institutions in the country and a regular issuer of green bonds on the international capital markets and in the retail segment in Austria and CEE,” proclaims the bank in its Green Bond Allocation and Impact Report 2024.

RBI has also developed a Sustainability Bond Framework to facilitate the issue of sustainable bonds. The bank works closely with clients in countries across the region to determine their needs and long-term environmental goals and tailor any forthcoming environmental, social, and governance (ESG) loans accordingly. In total, ESG loans to corporates over 2024 grew some 14% to €8 billion after a 16% increase in 2023 to €7 billion.    —Justin Keay

Akbank issued its first social bonds in 2022, and they have since proven to be suitable for its general bond issuance strategy. The bank issued some 770 million Turkish lira ($21.4 million) in domestic social bonds from 2022 to the end of 2023. The bonds incorporate three main pillars—environmental, technological, and social—that are aligned with Akbank’s Sustainable Finance Framework. The social pillar focuses on financing products and services to improve the health and well-being of communities in underdeveloped regions, facilitate equal opportunity, and generate employment, particularly among less-represented groups.

The bank has complemented its program of social bond issuance with a program of social loans. In 2023, in the wake of the devastating Feb. 6 earthquake that hit Turkey, Akbank announced the country’s first syndicated social loan, some $500 million in support of the Turkish economy, with a 367-day maturity. Thirty banks from 16 countries participated in this syndicated social loan, which was a first in Turkey.        —JK

Bank of the Philippine Islands (BPI) in 2024 issued and listed peso-denominated, fixed-rate, sustainable, environmental and equitable development bonds (SEED bonds) totaling nearly 34 billion Philippine pesos (about $587 million). The SEED bonds represent the bank’s largest thematic issuance to date. Proceeds will fund renewable energy, pollution prevention, and sustainable agriculture projects. They will further finance socioeconomic development activities, such as providing access to essential services for poverty-stricken communities.

The bank also served as a joint lead underwriter and bookrunner for Ayala Land’s 6 billion Philippine peso sustainability bond. Ayala Land is one of the largest property developers in the Philippines, and bond proceeds will be used by the company to implement energy and water-saving measures across its real estate portfolio. These measures include energy-efficient cooling systems and water harvesting/recycling systems. These and other activities bolster the bank’s goal of creating a 1 trillion Philippine peso corporate and SME portfolio supporting the UN Sustainable Development Goals. It hopes to reach that milestone by 2026.         —LS

CaixaBank has long been a global leader in microfinance, social bonds, and support for local communities.

The bank’s commitment was tested in October 2024, when record-breaking rainfall and flash floods battered Spain, causing casualties, massive disruptions, and economic losses, especially in the Valencia region. Caixa responded by opening a line of credit worth more than €2.5 billion for companies affected by the catastrophic weather. The bank also allowed commission-free cash withdrawals for customers with cards from other banks, for seven days, at the 785 ATMs it operates in Valencia.

In the first half of 2024, Caixa dedicated €1.08 billion to financing projects that positively impact local communities. This included its Velindre project, helping to fund the design, construction, and operation of an oncological hospital center in Wales. The bank also focused in 2024 on loans to finance projects linked to affordable housing, education, health, social and economic inclusion, and support for small and midsize enterprises in the Madrid area. —AS

Scotiabank’s goals are guided by its motto: “for every future.” This wholesale bank operates in the Americas and focuses on advancing the climate transition and promoting sustainable economic growth.

The bank’s enterprise-wide goals address climate risks by financing solutions for clients in carbon-intensive sectors, advancing net-zero initiatives to reduce emissions, and reducing its own emissions. Scotia’s Climate-Related Finance Framework outlines products and services that meet the bank’s goal of providing 350 billion Canadian dollars (about $246.2 billion) in climate-related finance by 2030.

Scotia’s credit due diligence processes address environmental and climate-related risks across its lending portfolio and are integrated into its credit-risk policies. Scotia Global Asset Management has adopted sustainable investment policies and publishes annual investment transparency reports.

In its Risk Appetite Framework, Scotia uses ESG performance metrics that are also included in its annual industry review process. The climate change risk assessment evaluates physical and transition risks and a client’s awareness of climate risks as a measure of management quality. —AM

Based in Malaysia, and one of the largest lending banks in Southeast Asia, Maybank is committed to serving the emerging markets in the 20 countries in which it operates. Here are some examples: In Indonesia, the bank has embarked on a social financing program to empower disadvantaged women and support growth through its partnership with Permodalan Nasional Madani. This microfinance company, focusing on women in its work with Maybank, strives to enhance the general welfare by supporting small entrepreneurs’ access to capital, mentorship, and capacity-building programs. Understanding that a healthy environment is key to any business’ success, Maybank is working with BenihBaik.com to support the construction of organic waste facilities in three cities in Bali. These waste management facilities will provide a cleaner environment for residents while also engaging in bioconversion processes that use living organisms to transform waste into substances such as methane that can later be used in energy production.           —LS

OTP Bank, formerly owned by the Hungarian state, now operates across 12 CEE countries. It continues to prioritize ESG targets in all its operations and is a leader in transition/sustainability-linked loan issuance. Such loans typically incorporate ESG criteria into the loan terms. Companies that meet or exceed predefined ESG performance targets may benefit from reduced interest rates, incentivizing sustainable practices. Conversely, failing to meet these targets may result in higher interest rates, thus ensuring a strong commitment to sustainability.

Green loans to corporates (including ESG-related loans) rose 38% year on year (YoY) in the third-quarter of 2024 (over Q3 2023), while retail loans rose 17% YoY. Green loans to corporates constitute around 6% of overall loans, to retail around 1.4%. In 2024, ESG financing as a proportion of the total for OTP reached 3.7%, more than double the 1.7% reached in 2023. According to Sustainalytics’ July 2024 report, “€1.26 billion have been allocated in the categories renewable energy, green buildings, and clean transportation, with projects located in Albania, Bulgaria, Croatia, Hungary, Romania, Serbia, and Slovenia.”         —JK

The sustainable infrastructure finance work of Societe Generale (SocGen) includes acting as initial coordinating lead arranger and joint bookrunner for the $8.8 billion SunZia Wind and Transmission project. The project consists of a 3.5 GW wind farm in New Mexico, along with a 550-mile transmission line to deliver this clean energy to Arizona. In Europe, SocGen served as senior mandated lead arranger for €4.2 billion (about $4.4 billion) in financing earmarked for the construction of a large-scale facility to produce green steel. Associated financing will fund the construction of a water treatment plant to supply the demineralized water necessary for green steel manufacturing. Among SocGen’s ESG-related loans are €2.6 billion in financing for the Fècamp 497 MW offshore wind farm in France. SocGen also acted as sole structuring bank for ReNew Power’s 600 MW, 35 billion Japanese yen (about $233.2 million), solar project in India; and as sole mandated lead arranger for nearly 11 billion Japanese yen in funding for Shizen Energy’s Kyushu (Japan) solar power plant.   

Global Finance: Turkey was once notable for being slow in adopting a sustainability agenda, but this has changed dramatically. Why?

Kaan Gür: The recent acceleration of green investments in Turkey can be attributed, first, to a growing awareness of the environmental and social consequences of unsustainable systems. Today, many investors prioritize environmental and social impacts alongside financial returns. Public authorities in Turkey have also taken significant steps to advance sustainability. In parallel, Turkey has seen a considerable rise in foreign capital inflows in recent years, particularly those aligned with the green transformation agenda.

At Akbank, we have always viewed green transformation as an opportunity for Turkey. Public authorities also share a similar outlook. Apart from the environmental and social benefits, the transformation of the Turkish market in line with sustainable development goals will increase its competitiveness in global trade.

GF: Akbank has won several of our Sustainable Finance Awards 2025. What makes it stand out compared to competitors?

Gür: We are truly honored to receive these prestigious awards from Global Finance. An effective sustainable finance structure requires a bank to align itself with both client needs and investor preferences, which increasingly emphasize ESG factors. Akbank excels in managing this balance by creating a sustainable finance ecosystem that offers capacity-building initiatives, digital sustainability services, and specialized partnerships. Our proactive engagement with clients to support their green transition remains a key driver of our success in this area. Furthermore, our firm commitment to achieving net-zero emissions by 2050 underscores our leadership in sustainable finance.

GF: What criteria do you use when assessing new projects’ ESG credentials?

Gür: We have integrated environmental and social risk evaluations into our loan policies. Beyond the traditional risk perspective, since 2021, Akbank has been providing sustainable financing in green and social categories under our Sustainable Financing Framework.

We continuously adapt to meet investor priorities and market expectations, where long-term environmental and social impacts are as critical as financial returns. In 2023, we updated the Sustainable Finance Framework to include new green, blue, and social thematic areas. As the first deposit bank in the Turkish banking sector to set concrete sustainability targets, Akbank remains committed to providing TL800 billion ($22.2 billion) in sustainable financing by 2030 under this framework.

GF: What sectors of the Turkish economy have the most promise for green projects?

Gür: We prioritize the transformation of the energy sector, as it serves as a catalyst for the decarbonization of all carbon-intensive industries. Significant investments in renewable energy have been made in recent years and continue to gain momentum. The incentive programs implemented by the Ministry of Energy and Natural Resources have played a key role in sustaining this growth.

That said, given Turkey’s exposure to climate risks, project-based climate risk assessments are essential before proceeding with renewable energy investments, particularly in hydroelectric. We expect this issue to gain even greater importance in the near future.

Green hydrogen holds substantial potential for Turkey, particularly as an export to the EU market, making it a key priority for investment. In addition, energy storage and grid modernization are essential to support the expansion of the renewable energy sector.

Green investments in carbon-intensive sectors such as cement, iron and steel, and chemicals are critical, prioritized for green transformation under the EU Green Deal. Energy efficiency also represents a key area of focus.

GF: What financial instruments do you consider most effective in driving the green agenda forward?

Gür: There is a clear need for innovative financing structures that actively incentivize sustainable practices. In this context, sustainable external borrowing instruments have emerged as highly effective tools in recent years. These include green bonds and sustainable syndicated loans.

However, for a developing country like Turkey, where small to midsized enterprises form a significant part of the economy, programs supported by international funds are the most impactful. Such structures not only provide financial support but also offer technical consultancy services to accelerate the green transformation of various sectors.

Minds were further focused by a series of major conferences aimed at boosting sustainability across the region and highlighting the role of banks. These included the Annual Meeting last May, in Yerevan, Armenia, of the European Bank for Reconstruction and Development (EBRD). The EBRD aims to become a majority green lender this year. Its green projects include the Green Cities program and the Green Finance Academy, aimed at encouraging banks to scale up their green financing. Meanwhile, also last May, Prague hosted the annual CEE Sustainable Finance Summit, which will be repeated this year, focused on how to maximize opportunities under the European Commission’s European Green Deal, among other things. The region’s banks have led the way in boosting awareness of the need to transition toward a greener future and have devised a wide range of strategies and instruments to drive this forward.

Hungary’s largest bank, active across CEE in 12 countries, has long been committed to green and sustainable projects. Over 2024, OTP Bank consolidated its position as a leader in these areas. The bank has a dedicated environmental, social, and governance (ESG) department that works closely with the bank’s branches across CEE—a unique network that ensures policy consistency and transparency in all the countries. OTP Group established its Sustainable Finance Framework (SFF) in 2022 to facilitate the issuance of bonds to finance and refinance projects that enable the transition to a low-carbon and climate-resilient economy or have a positive social impact and alleviate social problems.

In Q3 2024, green loan volume increased by 38% year-over-year to 649 billion forints (approximately $1.65 billion), while retail green loans increased by 17% year-over-year to 51 billion forints. Sustainalytics reports that since the 2022 green bond issuance under the SFF, “€1.26 billion have been allocated in the categories renewable energy, green buildings, and clean transportation, with projects located in Albania, Bulgaria, Croatia, Hungary, Romania, Serbia, and Slovenia.”

OTP has set itself ambitious ESG financing targets that it looks to have pretty much achieved: For the full year 2024, the target was 1 trillion forints; and by the end of the third quarter, 873 billion forints had been attained. The target for 2025 is 1.5 trillion forints, 50% higher than in 2024, showing the extent of OTP’s ESG ambitions.

Last year was a key one for Akbank, a leading Turkish bank, winning no fewer than five of our coveted sustainability awards for the CEE region as well as one global award. Altogether the bank provided 126 billion Turkish lira (about $3.5 billion) in sustainable finance in the first nine months of 2024, based on bank-only management information system data, a sum that includes small and midsize enterprise (SME) loans (e.g., access to essential services, support for women-owned SMEs) and renewable loans, other green and social loans in line with its Sustainable Finance Framework, and ESG-type eurobond- and syndicated-loan purchases.

Akbank won our Sustainable Finance Deal of the Year with the issuance in June of a $500 million sustainability senior unsecured eurobond achieving a 7.5% yield and a total book size for the issuance of $1.5 billion. The ambitious deal bought the share of sustainability-focused funding in the bank’s portfolio to 66% of the total.

Following the devastating earthquake of February 2023, which has required billions for reconstruction, Akbank has honed its skills in financing infrastructure construction in a sustainable but effective way. Pockets of need across Turkey have enabled the bank to also become a leader in the issuance of social bonds to alleviate poverty and boost inclusion. In 2024, Akbank signed a major agreement with the EBRD called the Sustainable Supplier Financing Program, a risk-sharing model specifically developed for sustainability-focused supply chain finance.

Building on its 2024 win for Best Bank for Sustainable Communities in Central and Eastern Europe (CEE), IsBank continues its dedication to making an impact on sustainable economic transformation and has won this year’s Best Impact Investing Solution award for CEE.

In 2024, Turkey’s second-largest bank signed a syndicated loan deal for approximately $585 million, which will be used to fund environmental and social investments that align with IsBank’s Sustainable Finance Framework.

Sustainability-themed funding is an element of the financial institution’s strategic goals, noted Hakan Aran, CEO of IsBank, at the time of the loan’s announcement.

“We will continue to support sustainable transformation in the economy through this external funding,” he said. “With this $1.1 billion funding, we renewed the loan we obtained during the same period of the previous year by 124%.”

VUB Bank, as part of the Intesa Sanpaolo Group, has demonstrated a clear dedication to the circular economy. The Slovakian subsidiary has a Circular Economy Desk that provides expertise and support to businesses transitioning to circular models. This is part of a strategy aimed at integrating ESG into the bank’s wider operations. VUB offers various financial products and services, as well as partnerships, to support businesses in their circular economy ambitions. Offerings include loans, leasing, and other financing solutions. For individuals, the bank offers green mortgages and loans on reasonable terms for eco-friendly home improvements and electric vehicles.

VUB’s commitment to the circular economy reflects Intesa Sanpaolo’s goal of becoming a climate-neutral bank by 2030. To this end it has prioritized digitalization and a few years ago adopted the cloud-based Doxee Customer Communication Management platform to distribute the 60 million documents the bank sends to its customers each year, using a product that is flexible, reliable, and highly efficient.

The Development and Investment Bank of Türkiye (DIBT) recently celebrated its 50th anniversary and operates across development banking, investment banking, and fund activities. Established in 1975, it has provided over $5.3 billion in financing through investments in industry, renewable energy, resource efficiency, and numerous other areas, working closely with other development banks and international institutions. The bank is at the center of Turkey’s ongoing efforts to boost green energy, reduce its dependence on fossil fuels, and improve long-term energy security. Therefore, it is active in providing financing for wind, solar, hydro, and other renewable energy projects.

At the end of 2024, DIBT received $100 million in investments from the International Finance Corporation to increase financial support for enterprises fostering women’s inclusion and to promote women’s economic participation, leadership, and access to services in Turkey.

Issuance of green and sustainable bonds increased dramatically over 2024, with Raiffeisen Bank International (RBI) easily surpassing its total ESG financing goal of €7 billion for the year, attaining some €16 billion by the end of the third quarter. Sustainable bond issuance reached €4.1 billion, with three RBI banks (in Czechia, Slovakia, and Hungary) issuing ESG bonds worth €15 billion by the end of 2024.

RBI wins the award as Best Bank for Sustainable Transparency because of the extent to which environmental concerns are so deeply embedded in the group’s ethos: “Basic ESG rules are set in our Group Code of Conduct and RBI’s Group ESG and Sustainability Management Policy. Additionally, Sector Strategies are defining RBI’s transition path in the most polluting and CO2 emitting industries. According to our Climate and Environmental Business Strategy, we aim to create measurable impact following our commitments to the Science-Based Target Initiative, the Principles for Responsible Banking, the UN Sustainable Development Goals, and of course regulatory requirements,” wrote the authors of RBI Sustainability Report 2023. In 2023, RBI established a climate and environmental business strategy with the clear goals of supporting customers’ funding for investments in the green transition process and reducing emissions financed by RBI. This strategy was also presented to the European Central Bank.

In the shorter term, the bi-continental country’s much-vaunted Twelfth Development Plan (2024 to 2028) aims to improve its “international stature, fostering prosperity and combating inflation whilst maintaining strong and sustainable public finances.” That goal will depend partly on the success of an associated Foreign Direct Investment Strategy aimed at significantly boosting FDI across the board. The goal is for Turkey to account for 1.5% of global FDI and 12% of regional FDI by 2028.

As 2025 gets underway, how well is it all going?

If FDI is the main yardstick, not so well.

Full-year figures for 2024 have yet to be released, but will probably be close to the previous year’s level of $10.6 billion, down from $13.7 billion in 2022, a far cry from the 2007 peak of $22 billion, and shy of the $14 billion hoped for earlier. That’s less than 1% of GDP, against 3% in 2007 and well below both potential and policymakers’ hopes.

“Foreign investors don’t like inflation at 85%,” the rate in October 2022, “and they don’t much like it at 47%,” the rate in November 2024, says Charlie Robertson, head of macro strategy at FIM Partners, an investment fund based in the United Arab Emirates. “Persistent inflation has held back FDI in Turkey.”

Turkish policymakers succeeded in restoring some stability to the nation’s economy by driving down inflation with restrictive monetary and fiscal policies, albeit with a hit to the government’s popularity.

Local elections last March gave the ruling Justice and Development Party (AK) just 35% of the vote against 52% in national elections the previous year; Erdogan’s party now trails the opposition Republican People’s Party (CHP) in current polls.

That said, an unprecedented rebuilding of homes and infrastructure should lead to growth.

“Without the quake, the deficit would be 1.1%, which really isn’t bad,” Selim says, adding that 2024’s estimated deficit of 5% will likely fall to 3.1% this year.

The latest inflation figures are moderately encouraging; 2024 ended with a year-on-year rate of 44%, well below what was expected, thanks mainly to falling food prices.

“Disinflation will likely continue this year, given the CBT’s signal that it will maintain its tight stance despite the start of interest rate cuts, the ongoing real TRY [Turkish lira] appreciation, and improvement in services inflation,” says ING Bank analyst Muhammet Mercan. “We expect inflation to fall below 30% by the end of 2025.”

The current account deficit has narrowed to around $10 billion from 2023’s high of $60 billion, enabling a rebuilding of foreign exchange reserves that has made Turkey less dependent on external flows.

“Capital flows have been good; every recent bond and sukkuk issue has been three or four times oversubscribed whilst yields have been going down, showing perceptions of risk are falling,” Selim observes.

Ratings agencies approve. Last year, Fitch Ratings upgraded Turkey’s sovereign debt—alongside a clutch of Turkish banks—twice, from B- to B+ in March then to BB- in September, when it became the only country in 2024 up until that point to receive an upgrade from all three ratings agencies.

“In a sense, we’ve gone back to where we were in 2021, before those unconventional policy methods that led to a dramatic deterioration in the country’s macroeconomy and financial stability prospects,” notes Erich Arispe, senior director and head of Emerging Europe Sovereigns at Fitch Ratings.

Turkey’s slower short-term growth outlook reflects the ongoing rebalancing of the economy, which will take time given sticky inflation, Arispe argues. With no elections this year, falling dollarization, rising forex reserves, and an expected drop in the fiscal deficit as earthquake spending winds down are all encouraging signs.

“Turkey has the capacity to grow,” Arispe says. “We expect 2.6% in 2025 and 3.5% in 2026, without creating other economic distortions. But this is a multi-year story, with the economy being recalibrated to produce a sustainable higher growth environment” and realize the country’s export and FDI potential.

A new FDI strategy will prioritize less-developed regions, infrastructure, and renewables, says Ahmet Burak Dagliogku, president of the Republic Investment Office of Turkey.

“The aim is to attract investments that contribute meaningfully to Turkey’s development goals,” he adds, including “green transformation, digitalization, high-value services, and deeper integration into global supply chains.” These priorities “will help Turkey stay ahead in a competitive global market.”

Chinese electric vehicle manufacturer BYD’s plans to build a $1 billion plant in Turkey is just the sort of encouraging development the government wants since the EV sector is one of the fastest growing in the country. Turkish auto producer TOG has now turned out more than 50,000 vehicles. EVs are expected to account for 30% of total auto sales by the end of this year.

 Also worth noting, considering its energy security has always been a concern, is the government’s commitment to renewables. “Turkey will invest more than $100 billion by 2035 to increase its renewable capacity and modernize its infrastructure,” says Dagliogku. “This extensive investment plan highlights Turkey’s unwavering dedication to achieving its net-zero target while ensuring energy security and economic growth.”

Meanwhile, Turkey has been working closely with the EBRD and other multilateral development lenders. Last year, the EBRD committed about $22 billion, invested across almost 500 projects and trade facilitation lines.

“No, this isn’t an accident,” says the EBRD’s Selim. “We and Turkey have big green, digital, inclusion ambitions which are linked and where projects have been growing, to the extent that almost half our portfolio is in sustainable infrastructure. We want to further scale up Turkey’s green energy capacity, and five cities here are now part of our Green Cities program.” The EBRD has also been working with other banks on issues related to green bond issuance and encouraging private-sector Turkish companies to move to a low-carbon pathway.

A further promotion to investment grade status by the ratings agencies would be a big step toward realizing Erdogan’s wider 2028 ambitions.

“If you look back over the last eight or so years, there’s always been something to scare investors and throw things off track,” notes Selim: “a coup attempt, elections, COVID, Russia’s invasion of Ukraine, more elections. Investors are looking for certainty and policy tightness for at least, say, a three-year period. This is key if Turkey is to realize its potential of 4% to 5% annual growth.”

Longer term, that potential is huge, and Turkey’s private sector has a remarkable ability to adapt, Fitch’s Arispe says. However, “it takes time to re-establish macro credibility and for this to sink in with investors,” he warns. Many of the factors that underlie Turkey’s potential also put it at risk, including its geographical location, the possibility of taking an indirect hit from higher US tariffs, and exposure to changes in investor sentiment.

“Many factors are beyond Turkey’s control—and not least the current, highly fluid international outlook,” he notes. 

Against this backdrop, FX services have been gaining ground on companies’ balance sheets over the past few years, currently driving an average 50% of corporate value allocation, according to recent research by the market structure and technology research team at Coalition Greenwich.

FX trading volumes have been on a consistent uptrend since the pandemic, hitting a daily record of over $7.5 trillion this year, according to J.P. Morgan. Now, Market Data Forecast projects a 7.14% yearly compounded growth rate into 2032 for the global FX market.

The evolving scenario has prompted banks to rethink the status of their FX divisions, positioning them not just as an ancillary part of the corporate banking operation but as a core component of the overall strategy. On the clients’ side, the trend has significantly increased the demand for tailor-made FX offerings that cater to a client’s unique geographical reach and risk-exposure needs.

“Banks are creating personalized solutions like customized currency hedges or swaps. These tailored strategies help businesses manage currency risks in ways that suit their specific needs,” explains Swapnil Shinde, CEO and co-founder of Zeni, a corporate bookkeeping platform powered by artificial intelligence (AI).

“We also attribute this changing scenario to our corporate clients having a better understanding of the markets, thus managing foreign exchange and interest rate exposures over the short, medium, and long term with greater sophistication,” says Francisco Fernández Silva, managing director and head of the FX sales desk at Chile’s Banco de Credito e Inversiones (BCI).

With sophisticated demand from treasurers and CFOs growing and increased competition from peers, banks have been racing to deploy technological solutions that promise to bring better results and lower operational costs.

“The corporate FX market is undergoing a transformation driven by technological advancements that enhance efficiency, improve risk management, and democratize access for businesses of all sizes,” says Luis Martins, head of Global Macro at BBVA. “As companies increasingly adopt these innovations, they stand to gain a competitive edge in managing their foreign exchange activities effectively.”

However, the market’s most significant shift has occurred at the FX sales desk. Tools such as algorithms and machine learning models have been helping to automate the FX hedging process and other often-complex and highly volatile activities, bringing more-stable results.

BCI’s Fernández Silva also highlights the importance of AI in this revolution. “Breaking technologies, including artificial intelligence, are redefining offerings in the foreign exchange market by incorporating new participants, reducing information asymmetries, and increasing competitiveness,” he says.

Daisy-May Andrew, in interest rates and FX corporate rates sales at BNP Paribas, wrote in a company blog post that, in the current environment, companies must bulk up their currency hedging game with better, faster, automated solutions. “With the right automation tools in place, clients can add systematic hedging checks, which should, in theory, be able to search for the same red flags that one would do manually, albeit without the added concern of human error.”

According to recent research by FX-as-a-service provider MillTechFX, 86% of North American corporations planned to increase their FX hedging activity before the US presidential election, despite 73% noting increased hedging costs. This was due to concern about increased market volatility, among other factors.

Despite the significant numbers, Stephen Bruel, senior analyst at Coalition Greenwich, notes there’s still much ground to gain in FX trading. “Corporates should be encouraging their desks to adopt more advanced tools; the more electronic the trading, the better the data available to analyze execution quality and optimize results,” he added in a prepared statement.

High currency volatility is not alone in preying on corporates’ minds; Russian sanctions, the unwinding of the yen carry trade after 30 years of negative interest rates in Japan, the rise of the Chinese renminbi as an alternative reserve to the dollar, and the growth in alternative investments such as cryptocurrencies also play a role. These concerns have forced the market to increase its focus on currencies other than those of the Group of Five (G5) on the liquidity and product sides.

“Banks have adjusted their product range, offering solutions that include the opening of cash accounts and increased agility in global transactions services,” explains BCI’s Fernández Silva. “In some cases, having the opportunity to trade in different currencies gives clients the chance to realize cost advantages.”

In an October report, J.P. Morgan notes that the advancement of current trade-liberalization efforts across emerging markets, an increase in intranational trading driven by rising domestic customer demand, and these economies’ growing service focus are driving a decline in the proportion of FX reserves held in US dollars.

The trend is more pronounced in commodity markets, where the disruption in energy trade and the People’s Bank of China’s gold-buying spree—which resumed in November after a six-month pause—have prompted a significant change to currency reserves.

Such is the importance of the topic that US President-elect Donald Trump in November threatened to impose a 100% tariff on the nine BRICS countries should they “create a new BRICS currency, nor back any other currency to replace the mighty US dollar.”

Despite the warning signs, J.P. Morgan analysts do not see “de-dollarization” as an imminent threat, but as an important factor for corporations and banks to consider in particular business areas.

“FX reserves offer an incomplete picture of foreign asset accumulation. The rise in EM [emerging market] dollar-denominated bank deposits, sovereign wealth funds, and private foreign assets more than offsets the decline in overall dollar share of EM FX reserves,” says Saad Siddiqui, EM fixed-income strategist at J.P. Morgan, as quoted in the October report.

Zeni’s Shinde agrees that opportunities abound for the non-G5 currency market but notes that corporates and banks should be aware of the risks associated. “Businesses are looking at currencies beyond the traditional G5 to spread their risks. Still, they need to consider factors like stability and ease of trading before using them.”

Along with the myriad technological tools hitting the FX market over the past few years, leading banks have also been investing heavily in improving their research and advisory teams.

Against an FX market driven by central bank decisions and carry trade due to the global pivot to lower interest rates, these teams proved particularly important to corporate customers looking to stay one step ahead of the market.

In keeping with this trend, banks have been digging deep into their pockets to hire new talent. Recently, Citi, Deutsche Bank, Barclays, ING, Nomura, and Saxo Bank, and others, have made strategic additions to their FX departments.

BCI’s Fernández Silva explains the importance of balancing technology with first-class human talent: “In a landscape where central bank decisions and carry trade play a central role in global foreign exchange markets, financial institutions can offer unique value to their corporate clients through analysis of rate movements, economic variables, and exchange rate impacts, thus helping them capture value from carry trade and interest rate movements.”

BBVA’s Martins also highlights the key role of relationship management with clients and dealers. “Being able to offer best-in-class services in today’s foreign exchange markets requires a combination of strong relationships with clients and other dealers, along with top-level technology and data management,” he concludes.

—Thomas Monteiro

Global Finance selects its award winners based on objective factors such as transaction volume, market share, breadth of offerings, and global coverage, as detailed in public company documents and media reports.

Our criteria include subjective factors such as reputation, thought leadership, customer service, and technological innovation. We use input from industry analysts, surveys, corporate executives, and others. Although entries are not required in order to win, submissions that provide additional insight may inform decision-making.

Upon completing its megamerger with failing Credit Suisse in May 2024, Swiss banking giant UBS leveraged its already best-in-class corporate banking and foreign exchange (FX) capabilities and product offerings for a record-breaking year on several counts. Not only did the bank’s global operation more than double analysts’ expectations in the third quarter of 2024, booking a massive $1.4 billion in net income, but it did so with significant gains from its corporate banking division, which saw revenue jump by more than 8% year over year (YoY).

Those numbers received a massive boost from UBS’s thriving FX operation, which averaged over $125 billion in daily electronic FX trades during the year, with more than 2,500 active global clients.

The bank also posted substantial growth across several geographies and currency pairs. Among the highlights: solid profitability growth in Middle Eastern and Northern African currencies and a massive 40% market-share increase in Scandinavian currencies.

In Asia, the bank’s continued effort to improve its already top-tier suite of electronic FX capabilities paid off handsomely in China and Singapore, where it doubled down on its data center improvement efforts this year.

On the technology front, UBS kept expanding the limits of the global FX market, in July hosting the world’s first intraday FX swap in a regulated venue. The bank also recently launched its blockchain-based multicurrency payment solution, UBS Digital Cash. This addition to its’ digital offerings, processed through its flagship FX Engine Room, enhances the bank’s overall offering.            —Thomas Monteiro

Central banks were the star of the show in FX markets in 2024, bringing high volatility amid a global pivot in monetary stance that shifted interest rate differentials between the G5 countries and developing-market currencies. Corporate clients worldwide found a haven in Investec’s team of top FX experts, who led the way in research, analysis, and execution, ensuring that customers stay one step ahead of the competition in spotting the most important market trends.

In addition, the bank’s Investec ix digital platform proved a key differentiator by providing real-time rate visibility, allowing clients to secure competitive rates at a glance amid the shifting macroeconomic environment. Additional features like easy trade execution and payment on the same page were also important to leverage during the year.

Whether clients are individual corporates, small or midsize companies, or large institutions, Investec’s dedicated FX dealers, robust trading desk capabilities, and best-in-breed app guarantee the combination of a tailored approach with global capabilities when it matters most. As a result, the bank has continued to gain significant market share in the global FX world, more than tripling its presence over the past five years.    —TM

One of the largest FX providers in Latin America, Itaú Unibanco kept pushing the boundaries of what it means to provide excellence in trading of emerging market currencies in 2024. From July 2023 through June 2024, the Brazilian banking giant served over 326,000 clients in more than 1.9 million FX transactions in Latin America alone, with a notional amount totaling $225 billion.

Amid growing exports in the region, bolstered by a strong US dollar, an increase in nearshoring initiatives, and geopolitical uncertainty in the breadbasket Black Sea region, the bank leveraged its leadership to provide superior service, handling over $92.7 billion in trade deals during the same period.

To capitalize on the growing demand, the bank has expanded its dedicated FX team, increasing employee numbers by more than 10% from 2021 to 2024. The bank is also boosting investment in technology, increasing tech spending to nearly $20 million in 2024, an 8% rise over the prior two years.

The massive sum supports system modernization and enhances digital service delivery, allowing about 73% of transactions to be executed electronically. The bank’s trading platforms provide real-time pricing linked to market-makers’ books, ensuring competitive and efficient deals for clients.          —TM

BBVA’s market positioning across several geographies, including emerging and developed markets, has proved the key to success for corporate clients seeking to take advantage of the fast-paced interest rate environment of 2024.

The bank’s centralized core pricing engine is key to leveraging its FX capabilities to the next level, providing consistent and competitive FX rates globally. As the backbone for processing and executing FX transactions, the engine ensures that pricing is optimized and dependable. The bank also shines brightly through its unrivaled suite of fast-execution digital channels, with offerings such as BBVA Net Cash, which aligns FX goals with corporate clients’ business requirements; and BBVA eMarkets, which integrates FX with broader investment banking needs.

These tools ensure solid and instant liquidity in markets from Latin America to Turkey. They offer streamlined access to one of the most diverse ranges of FX products in the market, including spot, swaps, forwards, and more-complex structured products like options and exotics.

Due to top-level execution, the Spanish behemoth reached all-time highs in monthly electronic FX business volumes last year, boasting one-fifth of the market share in derivative volumes in 2024: a significant milestone.         —TM

The winner of the global Best FX Market Maker award is J.P. Morgan, reflecting its strong market position, deep resources, and technological prowess. These attributes allow the bank to provide exceptional scale and market access while efficiently handling high volumes of FX transactions.

One such solution is the bank’s Execute platform, which offers corporate and institutional clients full-service macro trading from a single platform. The benefits include diverse liquidity access, trade transparency, and competitive pricing for streamlined FX execution, as well as the ability to execute trades across over 300 currency pairs with efficient order routing across multiple electronic communication networks. The platform also provides enhanced functionality through various channels, including the web, application programming interfaces, and desktop or mobile devices, along with real-time analytics to access market insights from J.P. Morgan traders and analysts. Execute also includes a customizable alert feature to capture market movements. The Execute Mobile component provides transaction efficiency through one-touch trade execution, the ability to view historical trades, and a market monitor for FX rates.

The bank has also expanded its capabilities for FX options with an integrated platform that allows clients to transact a range of vanilla, exotic, structured, or multileg instruments. Additional features include the ability to view the market with multicurrency volatility grids and live insights from the bank’s options traders.           —David Sanders

Nordea’s undisputed positioning in the global FX environmental, social, and governance (ESG) market goes far beyond the bank’s extensive suite of investment products. ESG principles are a core part of the bank’s operation, providing unique market knowledge and opportunities for small and large companies.

The Nordic bank’s customers enjoy a full holistic sustainable-finance advisory that helps them allocate resources efficiently and protect against risks in the sector, particularly as the global ESG market stages a rebound thanks to 2024’s currency volatility.

Moreover, the bank’s extensive FX Algo Suite, which covers the full spectrum of FX transaction needs, from passive to aggressive market positionings, has proven a game-changer for those assessing market risks. It is further supported by the bank’s proprietary model of ESG accountability, which provides customers with another layer of confidence when making ESG-related investments on and off the FX spectrum.

This outstanding ESG offering is complemented by top-tier FX market research and financial advisory that allows clients to tailor market opportunities and financial planning to their needs and goals.     —TM

By offering first-class, tailor-made solutions for importing and exporting FX-related products, BTG Pactual, Latin America’s largest investment bank, rode the positive wave in Latin American commodities to a record-beating third quarter.

Although the Brazilian giant’s investment banking operation faced some macro headwinds, primarily due to underperformance in its home stock market, its corporate lending and business operation more than compensated, notching a phenomenal 29% YoY revenue growth as of the third quarter.

Against a backdrop of increasing export-related profitability and high currency volatility due to a devaluating Brazilian real, BTG helped clients in all areas of the commodity market by providing a combination of fast execution, excellent financial advisory, and top-grade hedging products.

The bank also continued expanding its FX funds offering last year, allowing clients based in Latin America to adopt more-sophisticated foreign currency holdings and hedging solutions. This allowed clients to benefit from a thriving global market.

BTG’s superior offering and financial planning helped commodity clients, in particular, weather growing supply costs due to the devaluating local currencies in Latin America. —TM

Adjudged the best bank for foreign exchange (FX) in Africa, Standard Bank continues to service the cross-border payment and funding needs of its corporate, investment, and individual clients despite the currency volatility and devaluation challenges that many African countries face. Standard Bank has an FX transactions market share of 30% in the African countries in which it operates. At the same time, it is one of the top finance institutions for FX needs in countries such as South Africa, Angola, and Zimbabwe.

Accounting for a larger market share “allows us to make, maintain, and manage a live, active, and tradable market price,” says a bank spokesperson. Standard Bank has more than 100 employees dedicated to its FX business, covering sales, trading, and operations. There are three dedicated FX trading desks: spots, forwards, and futures.

With 1.6 million trades per year and $1.7 trillion in overall turnover, Standard Bank signed an agreement in November with the World Bank’s International Finance Corporation on cross-currency swaps and derivatives for Africa. FX and local currency liquidity can be challenging in Africa, where some market reforms and attractive returns increasingly bring in more global investors, raising FX needs and transactions.

“There is growing interest in sub-Saharan countries, with investors recognizing the continent’s potential,” said Kayode Solola, head of global markets for Africa at Standard Bank Group, in comments accompanying the announcement.

The bank’s FX professionals “have the skills to support a diversified international and domestic client base trading in all G10 as well as 40 African currencies,” says the bank.

Winning the Best FX Bank awards in Africa and Angola represents international recognition of Standard Bank’s capabilities in meeting clients’ foreign currency demands.               —Tawanda Karombo

South Korean–based Hana Bank has established itself as a regional leader in the Asian financial markets, particularly in providing FX services. The bank has grown from a local financial institution into one of the most significant players in the global banking industry, and is currently boasting total assets of $400 billion.

“Hana Bank’s success in the foreign exchange market is built on our unwavering commitment to innovation and customer-centric solutions,” says CEO Lee Seung-lyul, the first CEO of Hana Bank with a background in foreign exchange. “We continually invest in cutting-edge technology and strive to offer the industry’s most efficient and secure FX services.”

This demonstrated expertise enables the bank to offer tailored solutions that meet the specific needs of its clients, whether they are looking to hedge against currency risk, make international payments, or engage in speculative trading.

This award recognizes Hana Bank’s outstanding performance and innovation in the FX market and underscores its position as a trusted and influential player in FX services.           —Simon Littlewood

This year’s winner for Central and Eastern Europe (CEE) is OTP Bank. Privatized in the 1990s and formerly the National Savings Bank of Hungary, OTP Bank is now a familiar name across the 11 countries in CEE and the Central Asia region where it has a presence. It sold its operations in Romania to Banca Transilvania because local regulations prevented it from further expansion. OTP is renowned for its innovative yet flexible service.

OTP Bank runs a centralized FX operation out of its Budapest headquarters. Ten traders and 25 salespeople conduct transactions for the main and regional subsidiary banks, offering pricing for 100 currency pairs.

The bank has started an internal digitalization project to simplify and accelerate the workflow for FX transactions. It operates a groupwide internet-based platform where clients of six subsidiaries can conclude FX transactions and convert funds into more than 40 currencies. The system already operates in Russia, Bulgaria, Serbia, Montenegro, Slovenia, and Croatia. Management is keen to introduce it to other subsidiaries and add new currency pairs to improve service and market coverage.

In November 2024, OTP contracted Integral Development, a leading currency-technology provider based in Palo Alto, California, to improve and automate foreign exchange pricing and distribution to the bank’s clients in FX spots, forwards, and swaps. According to Integral, its systems offer “liquidity aggregation, pricing engine, trading, and risk management solutions to deliver the highest pricing accuracy and reliability to its clients. … The flexible architecture ensures that OTP Bank can easily scale and adapt its FX infrastructure to meet evolving client needs” across the CEE region.            —Justin Keay

Despite already occupying a leading position in Latin America’s FX market, the Brazilian behemoth Itaú Unibanco kept expanding its offerings and robust geographical presence to notch another year of sustained growth in volume and profitability.

From July 2023 to June 2024, Itaú executed over 1.9 million FX transactions, with a total notional amount of $225 billion. The bank served over 326,000 clients during the period, demonstrating its extensive reach and expertise in managing substantial transaction volumes and liquidity.

Amid the region’s increasingly competitive market, the powerhouse accelerated its technological investment. This jumped from approximately $15.9 million in 2022 to nearly $17.2 million in 2024, mainly focused on improving the bank’s cloud platforms and microservices architecture.

The bank also added generative artificial intelligence to its offerings, thus enhancing efficiency and scalability in client operations. This endeavor has already generated significant results, with Itaú increasing its automation rate from 25% to 44% in 2024.

Despite its growing investment in technology, the bank continued to support its team of FX professionals. The team boasts around 350 best-in-class employees across several functions including sales specialists, support specialists, sales traders, and market-makers.         —Thomas Monteiro

Qatar National Bank (QNB) is the largest bank in the Middle East by assets. It operates in 28 countries, including 14 in the region. Its leading FX business, capitalizing on its strong credit rating, which reflects its financial strength and partial state ownership. A solid custody business aids FX operations.

The bank has significantly increased its market share of inflows to Qatar and international markets. QNB has broad access to the region, global financial hubs, and a broad network across Asia. The bank has rolled out a new cash management platform and ramped up business and operational capabilities. QNB has strengthened its offering as an integrated payment provider for cross-border transactions.

QNB has launched programs for exporters as well as cross-selling initiatives based on its trade finance and cash management capabilities. International payments have increased due to a new remittance system and enhancements to the bank’s correspondent account management and treasury transaction services. QNB successfully onboarded the first clients into its application programming interface (API) platform. Clients can now increase their internal financial accuracy and eliminate manual processes by accessing daily FX rates through API functions.

The FX desk has continued to perform well. The bank has improved its client service due to investment in stronger FX capabilities, allowing it to capture market opportunities.      —Darren Stubing

With its comprehensive suite of FX services, J.P. Morgan (JPM) has earned our award as Best FX Bank in North America. Through its Execute and Transact platforms, the bank offers institutional clients innovative solutions with an integrated approach to FX execution, including commodities and rates trading capabilities.

JPM’s Execute provides exceptional liquidity access, efficient execution, and trade transparency through robust market-analytics features, real-time data for trade optimization, and live support from traders and analysts to streamline workflows. The platform is accessible through multiple channels, including the web, APIs, and desktop or mobile devices. Execute Mobile provides market data and one-touch trading ability.

With FX Algos on Execute, clients can customize algorithmic trading strategies for greater efficiency, enhanced trade transparency and performance, and integrated pre-trade and post-trade analytics tools. Through JPM’s Transact digital platform, clients benefit from robust FX hedging and settlement solutions to manage cross-border exposure covering over 100 currencies. These offerings are integrated with treasury and cash management functions, contributing to a more efficient workflow.

Innovative new developments include advancements in blockchain technology through the Kinexys platform, which facilitates cross-border transfers. Integration with JPM’s FX services is expected in early 2025, enabling clients to execute and settle FX transactions with greater flexibility and efficiency and reduced settlement risk. —David Sanders

In a year when volatility was the norm across Western European markets, with several central banks pivoting their monetary stances, BBVA’s best-in-breed FX management and comprehensive suite of technological offerings gave the bank’s users a significant edge.

By leveraging its knowledge and presence across different geographies, the Spanish banking giant managed to post positive numbers in most of the region’s currencies, including the euro, British pound, Norwegian krone, Swedish krona, Danish krone, and Swiss franc. The secret behind BBVA’s outstanding performance is a combination of local-market expertise and a powerful, user-friendly app that allows users to instantly access and execute products such as FX spots, forwards, swaps, options, and structured notes, at the click of a button, with the best insights in the market.

Our Best FX Bank in Spain, BBVA also doubled down on its efforts to support growth in Western Europe by focusing on products that cater to the specific needs of the region’s small and midsize enterprises (SMEs). Through its flagship Net Cash app, the bank enables SMEs to hedge their FX exposure, order international transfers, and configure FX market alerts, all through a user-friendly interface tailored to their habits and needs.        —TM