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Steady growth in Asia-Pacific beyond China and Japan

China still dominates the Asia-Pacific top 25 and there are few changes compared with last year, however, the rest of the region is showing there is steady progress being made beyond the banking giants of its most dominant country.
by John Beck
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China’s continuing dominance of the Asia-Pacific banking sector has become more and more apparent in recent years. Removing the influence of its banking behemoths, along with Japan’s – which are customarily not considered as part of the Asia ranking – reveals a rather more nuanced picture, however.

Australia has traditionally been the third largest banking power in the Asia-Pacific region and excluding China and Japan leaves it clear to take the first four spots in a regional top 25. South Korea, which has also been a strong performer in recent years, posted strong results too, with more banks in the ranking than any other.

Bar some minor shifts in position, such as Taiwan and Thailand losing a bank each in the ranking, the balance of power in the region among the largest institutions has not shifted greatly from last year.

As with the 2010 rankings, the underperformance of India’s fragmented banking sector is starkly apparent. Despite having a gross domestic product seven times greater than Malaysia, for example, it only boasts one more bank inside the adjusted top 25 Asia-Pacific institutions.

There are some signs of hope for Asia’s third biggest economy, however. Indian banks make up six of the 10 highest movers in the Asia-Pacific region, excluding Chinese and Japanese institutions. Moreover, Punjab National Bank makes a new appearance in the regional top 25, and Bank of Baroda only misses out by a single place.

Bank Negara Indonesia tops the highest movers table, signposting the growing success of its homeland’s institutions in the Association of South-east Asian Nations (Asean) region. However, as with India, Indonesia is still punching significantly below its weight when its banking sector is viewed in the context of its overall economic clout.

From the largest Asean economies with a presence in region’s top 25 ranking to the smallest  – the Philippines. It was a good year for Filipino banks; in 2010, only one would have made it into the highest movers in Asia-Pacific (excluding Japan and China) table. This year, however, its count was boosted to four.

Top 25 Asia-Pacific banks
Top Asia-Pacific banks: highest movers

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