Regional leaders share crucial concerns over severe industry challenges
In a survey of challenges caused by current economic threats, David Li, CEO of BEA, KV Kamath, chairman of ICICI and Wee Ee Cheong, CEO of UOB are among leaders expressing concerns on liquidity, inflation and other issues. August 15, 2011 | Peter HoflichIn a survey of CEOs of Asian banks and regional leaders, a variety of comments and perceptions emerged on the current economic downturn caused by Standard and Poor’s downgrade of the US sovereign rating, along with concerns about the impact of a range of far-reaching issues affecting banks. David Li, CEO of Hong Kong’s Bank of East Asia, is not concerned about the US downgrade, and feels that market turmoil merely reflects frustration at governments’ failure in addressing sovereign debt issues. Of key concern is inflation, especially in property prices, which has been persistent and has resisted monetary, fiscal and administrative actions. Volatility has benefitted Li and Hong Kong’s banks in providing a temporary respite. KV Kamath, chairman of India’s ICICI Bank, who shares Li’s relief that inflation has eased and sees a benefit to his country’s economy, expects problems to trouble Europe and the US for quite some time. While the shock of recent events will put downward pressure on some commodities, such as oil, holding inflation in check for some time, however this will be counteracted by a low interest scenario being planned. Mike DeNoma, CEO of Chinatrust Commercial Bank in Taiwan, also sees inflation in Asia as being tempered by deflation from the West, with the latter as the stronger and more dangerous threat. Wee Ee Cheong, CEO and vice-chairman of Singapore’s UOB, is greatly concerned about the pullback in global liquidity and credit coming out of the global economic malaise that has grown out of the debt issues of the US and Europe, now heightened by the US downgrade. His bank has been focusing away from OECD markets for its assets, focusing more on Singapore and Asia and bringing down its loan to deposit ratio while focusing on improving liquidity to hunker down for short-term challenges that will flatten margins and maintain uncertainty in the ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Capital & Strategic Issues, China, Government Finance, Hong Kong, India, Risk and Regulation, SingaporeCapital & Strategic Issues,China,Government Finance,HK,India,Risk and Regulation,Singapore, Capital & Strategic Issues,China,Government Finance,Hong Kong,India,Risk and Regulation,Singapore, , Capital Marketscapital, Capital Markets, Keywords:US Credit Downgrade, Bank Of East Asia, ICICI Bank, Chinatrust, UOB, Pacific Alliance, Templeton, David Li, Wee Ee Cheong, K V Kamath US Credit Downgrade, Bank of East Asia, ICICI Bank, Chinatrust, UOB, Pacific Alliance, Templeton, David Li, Wee Ee Cheong, K V Kamath
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