The Chinese banking sector may have emerged relatively unscathed from the financial crisis, but regulatory reform is still high on its agenda, meaning that the China Banking Regulatory Commission has been keen to stay one step ahead of the game by introducing a new set of regulatory standards in the first half of 2011, which placed a strict emphasis on liquidity.

With the West’s financial collapse in 2008, Asia’s banking systems are in search of a new regulatory model. They are keen that their financial sectors should not dominate the real economy. 

The offshore renminbi bond market has seen a surge of issuance in the past year, with bankers predicting that 2012 will be even busier. This does not mean an easy ride for borrowers, however, with investors expecting higher yields as they no longer buy into the market solely on the basis of the strengthening currency.

China's onshore market has grown apace in recent years, driven by significant growth in its economy. Its increased size did not automatically lead to increased diversification, however, as the market remains dominated by government issues. Will new access rules and promising yields from corporate bonds lead to a more open market?

There seems to be something of an inevitability about the renminbi's rise to reserve currency and global dominance. However, there are mutterings that this ascents will be curtailed by China's development model, corporate governance and financial system.

Morgan Stanley's joint venture in Japan with Mitsubishi UFJ Group has been criticised by competitors as a concession to MUFG for its huge investment in the US bank at the height of the financial crisis. However, Jonathan Kindred, CEO of MSMS, one of the companies formed by the joint venture, is adamant that the long-term benefits of the move will prove the critics wrong.