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COVID-19: Luigi Wewege discusses risks to the Global Banking System

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A well-known figure in private offshore banking shares his views with us on the potential impact of COVID-19 on the global banking system as well as current investor sentiment. Luigi Wewege, Senior Vice President and Head of Private Banking at Caye International Bank in Belize discussed the situation with reference to several scenarios that investors could and should anticipate.

Regarding liquidity and stress tests, Wewege says that “Overall, United States and European based banks have showed reasonable improvement since the last financial crisis around 2008 however Europeans in particular do remember what happened with bail-ins and bailouts so you do see a lot of investor concern with what the European Central Bank might do next.”

When asked about some of the biggest concerns facing investors, Luigi noted that “There has been huge inflows of capital into the USA during the Trump administration. But now, people are a bit concerned about how far FEMA measures will go. People who have put large portfolios in either the USA or Europe are rethinking whether their safe-haven decision was the correct one. The Fitch Ratings agency already warned that the Italian banking system may struggle to cope with the fallout of the Coronavirus – and yes, it was not in a particularly good shape even prior to this. You also have countries like Greece that risks sliding straight back into a deep recession. So overall, investors do feel uneasy about the EU and US right now.” He went on to explain the various indicators that were taken into consideration during February plus March 2020 and said “Bank shares in Europe and the United States saw a very sharp repricing and decline. Government bond yields are falling, with US corporate high yields shooting up. This all shows that investor confidence in the global financial system has been shaken.”

Elaborating more on the scenario in Europe, Wewege believes “With such a substantial socio-economic shock unfolding in front of us, the brightest of financial analysts find it hard to see how Banks in the most affected European countries can maintain good assets and earnings. If repayment of loans ceases in the case of many European families – toxic assets becomes a big risk to them very quickly.”

About IMF policies during these challenging times, Luigi says “In fairness, the International Monetary Fund acted quickly to help countries during the time of Ebola, but that was a much smaller issue than what we face today. We know that given the huge spike in uncertainty that some in the IMF are proposing that there is a consensus worldwide to have a common monetary policy – and that will hopefully prevent a scenario where some currencies end up being the losers in Black Swan events. Yet all these instruments have their limits and at some point, it will come right back to the question of liquidity. That’s precisely why so many middle income to HNWI’s have allocated a decent portion of their portfolios to offshore banks that do not face the same exposure and risk that European and USA based banks do.”

Wewege went on to explain common risks that each individual country may face in the immediate future and aftermath of COVID-19: “A reduction in revenue and productivity may affect many countries – it is already doing so with disrupted supply chains and right now more borders are shutting. Then we have crippled public health systems in Europe who will need to consume a lot of public funds/stimulus in order to continue. Then off course there is one word that scares just about every European country and US state: Tourism. It is an important sector that is showing early signs of major strain that will likely continue for many more months. All these risks add up and will cause great strain on the global economy for the duration of 2020 and possibly even into 2021.”

On the ongoing appeal for offshore banking, Luigi says “Investors from all over the world gained a lot of respect for jurisdictions, like ours in Belize, where our banks were largely untouched by the 2008 financial recession. And yes – they certainly remember what happened to some large banks in Europe and the USA at the time and thus feel the writing is on the wall, whether it is indeed the case or not. Although we cannot predict accurately what the state of the global banking system will hold especially in Western countries, we can see a clear shift towards diversification and the start of more deposit inflow at offshore financial institutions like ours in Belize.”

Sound off:

Some may argue that the Dodd-Frank law that was passed in 2010 rendered the United States a less of a risk today than it was around 2008 and doomsayers who closely watch the Italian, French and Greek economies may have a point that the worst is still to come. Ultimately, these are very challenging times and to some extent, unchartered territory for the global financial system dealing with the Coronavirus pandemic.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

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Business

Billionaire Space Baby (BSB) – About the Founders

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Billionaire Space Baby (BSB) is the brainchild of Ace (aka @wiremecrypto) and Nick (aka @internetwires), serial entrepreneurs with an eye for trends and strong believers in financial independence. Both Ace and Nick saw an opportunity in NFTs, crypto, and the wide-open digital world that will become the Metaverse. In response, the pair hit the ground running with Billionaire Space Baby and haven’t looked back.

The Billionaire Space Baby brand and all it entails is their way to capitalize on an emerging market while also sharing their skills, insights, and connections with Billionaire Space Baby Space Cadets and a community of like-minded, hungry entrepreneurs.

Their combined passion for entrepreneurship—making something out of nothing and paving your own way—and a strong desire to mentor other young entrepreneurs is what drove the Billionaire Space Baby founders to create the Billionaire Space Baby NFT project.

More than just another cookie-cutter NFT project, Billionaire Space Baby is positioned to be a leading platform, community, and springboard for Space Cadets to learn and grow in an evolving digital, decentralized marketplace.

Both Billionaire Space Baby founders are excited to share the Billionaire Space Baby mindset with entrepreneurs who are looking to make their dreams come true but just need a little extra help along the way.

That’s who Ace and Nick are—two visionaries that love the idea of helping others achieve their goals of financial independence and want to create, curate, and grow the world’s finest NFT community.

Entrepreneurs at a Young Age

Both Ace and Nick grew up knowing they wanted more out of life than a 9-5 job. Growing up in a culture that thrived around the entrepreneurial spirit, the Billionaire Space Baby founders knew from a young age that financial independence and security early in life was not only a priority but a path to bigger and better things down the road.

Ace started learning how a business was run and how to be independent as early as 12 years old while working with his father in a photography/cinematography business. Even then, he hated the idea of wasting time on things that weren’t going to position him to succeed. Looking back, he remembers sacrificing a lot of typical childhood experiences, intentionally, to learn and grow as an aspiring young business owner.

Nick also started young, jumping into the ecommerce world at the age of 14 with his own ecommerce business. He recognized a drive within himself and a desire to invest his time and efforts into something that he could wake up happy to be doing. For Nick, his time was valuable, and he couldn’t imagine toiling away at a 9-5 job doing the same tasks day in and day out.

“Growing up,” Nick says, “I wanted to make something out of myself.”

Both Ace and Nick found their passion for success by their own hands young in life, and neither would trade their time spent learning the ropes and traversing the business world for a typical day job.

“It’s all about what you’re trying to achieve,” offers Ace. Ace and Nick want to achieve greatness.

Entering the Crypto Space

Nick and Ace consider one another as their right hand man in all things business. Their paths crossed years ago, and they’ve since worked on various projects and in various spaces to find and focus on continued success.

Throughout their time together, the mantra has always been achieving their goals and realizing their vision, and that mantra is paying off.

“We operate very much the same and have high intentions when working on a big project,” says Nick of their partnership. He realizes that working together, and working hard towards a shared goal, is what makes the pair click. “The more work you put [into] any project, the better the result of the outcome.”

And that’s why Ace and Nick feel confident Billionaire Space Baby will succeed in the NFT and crypto space. Both Billionaire Space Baby founders entered the crypto and NFT world years before Billionaire Space Baby became a reality, and both learned the ropes quickly and with intention.

Both the blockchain technology that forms the foundation for NFTs and the potential of bringing a high-quality concept to a digital marketplace ripe with potential were instant attractions.

“A decentralized way to make money? I’m in,” reflects Ace when he thinks back to when he discovered cryptocurrency and its potential.

“NFT’s and crypto work [well] together,” adds Nick. “I see crypto being [an] even larger currency than it is today. It will be very valuable to have money in crypto [and] to see it grow.”

The Billionaire Space Baby Concept

Billionaire Space Baby is a lifestyle as much as it is an NFT project to the Billionaire Space Baby founders. Billionaire Space Baby is a way for them to leverage their entrepreneurial experience to cultivate a community for hungry, like-minded individuals that share their goals and aspirations.

“Everyone has a dream, but not a lot of people out there will start shooting for their dreams,” shares Ace. “Maybe they don’t even believe in it. They just have a dream.”

Which is why Ace is so passionate about sharing his expertise and industry connections with Billionaire Space Baby Space Cadets—to make those dreams come true. In his mind, seeing dreams become realities is as much a part of the entrepreneurial lifestyle as the financial security that it brings.

“A lot of people have great mindsets and business ideas they can go and [create],” echoes Nick. “That’s when money becomes an issue.”

Neither Nick nor Ace like the idea of money standing in the way of someone’s dreams. So, it’s been their goal for years to create a space where passionate young entrepreneur hopefuls can learn, grow, and thrive without letting money (or the lack of it) stop their progress.

That’s where Billionaire Space Baby comes into the picture. The concept for the NFT project—a release of 7,777 high-quality unique 3D artworks—is that each piece acts like a ticket onto the Billionaire Space Baby rocket ship. You buy the ticket to take the ride, then you’re part of the Billionaire Space Baby club as it blasts off into uncharted territory in search of success in all shapes and forms.

Because Billionaire Space Baby is more than just an NFT project. Billionaire Space Baby is a mindset. Billionaire Space Baby is a way of life. It’s a way to secure connections with industry leaders, rub shoulders with industry experts, and share aspirations with industry makers.

Billionaire Space Baby aims to change the way NFT holders look at making money and becoming financially independent.

Join the Billionaire Space Baby Founders to Realize Your Dreams

“For every different type of role in an NFT project, everybody needs to be on their A-game,” says Ace when thinking about the world-class team of artists, marketers, and developers he and Nick have brought together for Billionaire Space Baby. “Everything has to come together and align perfectly.”

For both Nick and Ace, things are aligning perfectly. The launch of the Billionaire Space Baby NFT collection is just the tip of an ever-expanding iceberg, and the Billionaire Space Baby founders are thrilled to find eager, energetic Space Cadets that want to see their dreams become realities.

“I forget about the prize and focus on creating something that people love,” says Nick. “Having an expression of ‘wow’ when they see a project that my team and I have created,” is what makes the juice worth the squeeze for him.

Ready to blast off with Ace and Nick as Billionaire Space Baby changes the NFT and crypto space? Not quite convinced? Read the Billionaire Space Baby white paper to understand why Billionaire Space Baby stands apart from every other NFT project out there.

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