Asian bankers express optimistic, albeit cautious hopes for transaction banking business
A combination of commitment, investment in technology and infrastructure, as well as physical presence, is required to succeed in transaction banking. October 16, 2012 | Foo Boon PingAsia has continued to be resilient in the face of global economic flux and is expected to enjoy reasonably good though slower growth. Today, Asia is better diversified although not totally de-coupled from Europe and the US. Growth is driven by the big engines of India, China and the developing markets of Southeast Asia, particularly, Indonesia. In addition, the deleveraging that has seen some European banks reduce their activity level over the past 12 months also seems to have eased, and some European banks are coming back into the market. Juultje van der Wijk, ING’s global head of trade finance, says that there are enormous growth opportunities for European companies in Asia. In the last 12–18 months, European banks were deleveraging their businesses and focusing on their home and core markets and reducing their business activities in Asia. However, that did not leave a gap in the Asian market. “For banks that are focused here, they have picked up the slack and increased market share,” said Standard Chartered Bank’s global head of corporate cash and trade, Ashutosh Kumar. “So there has been decent capacity to support trade activities. In fact, in some markets, India for example, pricing has stabilised and come down, which is a good indicator that supply and demand are more balanced now,” he continued. And it is this resilience and growth in the Asian markets that is causing bankers to sit up and realise that they cannot afford be out of the market in a region that is growing faster than any other. According to the Asian Development Bank (ADB), the region’s growth may have slowed slightly but it remains robust, especially against the advanced economies of Europe and the US. The reason for this “double track” growth is the increasing economic integration and expansion of intra-regional trade. And where trade grows, so does the importance of an efficient and integrated financial system to support it. “... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Cash, Treasury & Trade, China, Rmb, Trade Finance, Transaction Bankingcash,China,Rmb,Trade Finance,Transaction Banking, Cash, Treasury & Trade,China,Rmb,Trade Finance,Transaction Banking, Keywords:ING, Juultje Van Der Wijk, Standard Chartered Bank, Ashutosh Kumar, ADB, Donghyun Park, BofA, Ivo Distelbrink, Wee Ee Cheong, UOB, Nancy So, Deutsche Bank, ICBC, DBS Bank, OCBC ING, Juultje van der Wijk, Standard Chartered Bank, Ashutosh Kumar, ADB, Donghyun Park, BofA, Ivo Distelbrink, Wee Ee Cheong, UOB, Nancy So, Deutsche Bank, ICBC, DBS Bank, OCBC
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