Chinese banks must be able to adapt to current market dynamics to stay competitive
Remarks by Fan Wenzhong, director general, international department, CBRC, at the China International Banking Convention 2013, on the changing banking landscape in China. May 16, 2013 | Fan WenzhongFrom a regulator’s point of view, I would like to first provide you with a brief overview of the recent macroeconomic environment, what the Chinese banking sector has achieved over the past year, and insights and advice to banks in response to the on-going and profound market changes. I. Recent macroeconomic environment and Chinese banking performance Almost five years on since the financial crisis erupted in the autumn of 2008, the global economic recovery and financial reforms remain a painful and protracted process. In the Eurozone, economic activity remains weak, financial conditions remain highly vulnerable, and sovereign stress and tight credit conditions continue to weigh on growth prospects. For the US, the uncertainty about its growth outlook is still lingering on, and fiscal consolidation continues to be a drag on growth despite the threat of a “fiscal cliff” was largely averted. Major emerging economies are faced with more challenging tasks of sustaining economic growth, following a broad-based weakening external demand and rising inflation expectations caused by the loose monetary policies in advanced economies. Amid the complex and fluctuating global economic situation along with the downward pressure of the domestic economy, the Chinese banking sector embraced challenges and reforms and delivered brilliant records in 2012. As of the end of 2012, the total banking industry assets reached $21.7 trillion, a 17.9% increase compared to the prior year. In 2012, annual net profits for Chinese commercial banks were $201.7 million, a 19% increase compared to 2011, while their ROA and ROE stood at 1.3% and 19.8% respectively. Up to now, four Chinese banks are ranked as among the top 10 global banks by market capitalization. Banks such as Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China continue to steam ahead, showing tremendous growth in terms of ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Basel III, Capital & Strategic Issues, China, Operational Risk, Regulation, Retail Banking, Risk and Regulation, SME Banking, Trade Finance, Transaction Bankingbasel III,Capital & Strategic Issues,China,Oprisk,riskregulation,retail,Risk and Regulation,SME Banking,Trade Finance,Transaction Banking, Basel III,Capital & Strategic Issues,China,Operational Risk,Regulation,Retail Banking,Risk and Regulation,SME Banking,Trade Finance,Transaction Banking, Keywords:The Asian Banker, China International Banking Convention 2013, Fan Wenzhong, CBRC, FATCA, Market Risk, Credit Risk The Asian Banker, China International Banking Convention 2013, Fan Wenzhong, CBRC, FATCA, Market Risk, Credit Risk
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