Chinese bank assets are now larger than those in the US. A comparison of the two countries over time may give clues to the sector’s sustainability in China.

As the much discussed tapering of quantitative easing in the US becomes a reality, Jane Cooper finds this topic is weighing on the minds of Asia’s financial leaders, along with the increasing role of the renminbi. 

With the US and European crises behind them, South American trade figures are back on an upward slope. Local banks are paving the way for improved relations with China, and Chinese banks are increasing their presence in the region. Even the proximity of the US could have its benefits.

The UK and the US are taking very different regulatory stances, the former reverting to its characteristic light touch while the latter is taking a heavy-handed approach, but both regimes are driven by political considerations rather than market needs and are therefore at risk of damaging their respective banking systems.

The renminbi's slow move towards becoming a global currency has gathered momentum in the past 12 months, and with China's new premier signalling his intention to smoothen this process even further, the currency appears destined to achieve reserve status in the not-too-distant future.