Rapid economic growth in Greater China helps boost banks' regional rankings
Banks from Greater China have grown in strength and stature, and made their presence felt with complete dominance in AB500’s “Asia Pacific’s Strongest Banks” ranking. October 24, 2012 | Baron LaudermilkAccording to AB500’s “Asia Pacific’s Strongest Banks” ranking, the region’s top 400 banks seem to be dominated by banks from Greater China, with nine out of the top 10 Chinese banks on the list either hailing from Hong Kong or Mainland China. Out of the top 20 strongest banks, 18 are from Greater China. This represents a major shift in Chinese banks’ performances, as compared to 2010, when Chinese banks represented less than half of the top 20 banks in the Asia Pacific region. The rapid economic growth experienced by Greater China has not only helped spur bank performances, but also placed banks there in positions of strength. In contrast, Taiwanese banks have taken a tumble in the rankings, as banks on the island face fiercer competition and a weakening market. Hong Kong banks come out tops According to AB500 data, the top four banks in the Asia Pacific region all come from Hong Kong. Standard Chartered (Hong Kong) leads the pack, followed by Bank of China (Hong Kong), HSBC and Hang Seng Bank. Hong Kong banks have managed to come out tops mainly due to good asset to GDP ratios. But how have they been doing this? First of all, there is a strong banking concentration in Hong Kong, with a small number of large banks that dominate the banking sector. Hong Kong’s four largest banks constitute 76% of Hong Kong’s banking assets. Hong Kong also boasts one of the world’s largest financial centres. Apart from this, Hong Kong banks have maintained a strong foothold throughout the region, especially in China. Hong Kong was first to be granted a renminbi clearing system in November 2005, as demand for renminbi denominated bonds and deposits having since skyrocketed. In addition, because multi-national corporations perceive Hong Kong as a gateway into China, Hong Kong banks are well-positioned to offer loans and financial services to these firms. This position has cemented banks’ ability to drive asset growth. I... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asian Banker 500, China, Databook, Hong Kong, TaiwanAsian Banker 500,China,Databook,HK,Taiwan, Asian Banker 500,China,Databook,Hong Kong,Taiwan, Keywords:Standard Chartered Bank, BoC, HSBC, Hang Seng Bank, Bank Of Yingkou, Bank Of Guilin, Bank Of Nanchang, Bank Of Zhengzhou, Post Savings Bank Of China, Bank Of Chongqing, Bank Of Tingkou, Bank Of Jiujiang, Bank Of Kunlun Standard Chartered Bank, BoC, HSBC, Hang Seng Bank, Bank of Yingkou, Bank of Guilin, Bank of Nanchang, Bank of Zhengzhou, Post Savings Bank of China, Bank of Chongqing, Bank of Tingkou, Bank of Jiujiang, Bank of Kunlun
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