In choosing their next leader, Indians are essentially having to choose between economic and political stability, with neither of the two major candidates likely to satisfy on both scores.
Foreign banks currently account for less than 2% of the Chinese banking industry, but thanks to the country's vast retail market, growing asset management industry and M&A-hungry corporates, many global banks are positioning themselves to take a bigger share of the spoils.
The Greater Mekong Delta sub-region of Cambodia, Laos, Myanmar, Thailand and Vietnam has been posting stellar growth figures in recent years, and looks set to continue this trend. However, each country within the region has its own social, political and economic hurdles to overcome. Stefania Palma reports.
Kazakhstan’s sovereign wealth fund is in the process of extricating itself from banks it rescued during the crisis, but poor asset quality is posing a serious challenge to the new owners.
The fourth most populous country in the world. A fast-growing economy. A rapidly rising middle class. A huge unbanked population. There is little wonder that domestic and international lenders are focusing on getting their Indonesia strategy just right given the potential rewards on offer, but penetrating this vast archipelago is no easy task.
A strong economy and good governance have helped maintain healthy profitability at most of the Philippines' largest lenders, but with plans to establish a semi-integrated regional banking industry among the Association of South-east Asian Nations members – which would pit local institutions against much more mature banks – many are looking to diversify, both in terms of the products they offer and the customer base they serve.
Shanghai has attracted the highest levels of inward FDI in the Asia-Pacific region in the financial services sector, while Singapore leads the way in terms of outward foreign direct investment.
The relatively small economies of Vietnam and Cambodia are punching above their weight in terms of growth in The Banker’s latest Association of South-east Asian Nations ranking. Meanwhile, Singapore’s banks retain their dominance in the ranking in terms of Tier 1 capital.
If the early 2000s were all about the emerging economies of Brazil, Russia, India and China, now attention is shifting to the up-and-coming countries of Mexico, Indonesia, Nigeria and Turkey – the MINTs. And with rapid economic growth predicted, retail banks in these countries will be under enormous pressure to keep up.
The Chinese government is promising far-reaching economic reforms, but these are likely to put the financial sector under strain. Former chairman of the China Bank Regulatory Commission Liu Mingkang tells Philip Alexander how the authorities can manage the transition.
Please select an area to explore
Most popular content
- Trade finance securitisation
- Getting excited about innovation
- Chapter 1 of 4: Managing intraday liquidity in a changing regulatory environment; Dodd-Frank, EMIR and Basel III – what they mean for liquidity managers
- Interview with Philip Alexander, Senior Editor, The Banker - View from EBRD 2014
- Chapter 1 of 4: Internationalisation of the renminbi; Trade and payments