“Intra‐Asian trade is on the rise, local banks must up their game”
Lisa Robins, Asia Pacific Head of Global Transaction Banking at Deutsche Bank, feels that it is critical for banks to take a hands-on and flexible approach to leverage burgeoning intra-Asian trading relationships. November 13, 2013 | Lisa RobinsIntra‐Asian trade is on the rise. The latest World Trade Organisation figures indicate that intra‐regional trade accounts for over half of Asia’s annual exports and imports – 53% and 57% respectively. These numbers are likely to rise as domestic demand solidifies in the years ahead. However, keeping up with such demand – particularly in light of the complex idiosyncrasies of the Asian market – can be challenging for local banks that may lack the resources of their global counterparts. While opportunities abound for domestic corporates, those very opportunities can create challenges for their local banks and those that are underprepared to cater to the evolving needs of clients across the region. Indeed, there are many potential barriers to intra‐Asian trade that corporate clients will look to their partner banks to address. One is the fragmented regulatory framework. In‐country variations – with respect to corporate governance rules, for example – are particularly difficult to navigate given the pace of regulatory change. This is notably true of China – one of the key drivers of intra‐regional trade flows – where on-going reform of the renminbi can make keeping abreast of developments difficult for corporates operating in this market. In addition, differing currencies, business practices and varying levels of operational practices can create obstacles that may increase transaction risks. And, of course, these risks are heightened if trade is with unfamiliar counterparties and/or local markets. With such broad market differences found throughout the Asia Pacific region, financial institutions must be equipped with market‐leading solutions and capabilities that accommodate the wide range of trading requirements and risks. This will position them as a driving force in leveraging intra‐regional trade – in turn enabling their corporate clients to reap the commercial benefits. Indeed, with regional economic growth in... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asia Pacific, Cash, Treasury & Trade, China, Payments, Rmb, Trade Finance, Transaction Bankingasia pac,cash,China,Payments,Rmb,Trade Finance,Transaction Banking, Asia Pacific,Cash, Treasury & Trade,China,Payments,Rmb,Trade Finance,Transaction Banking, Keywords:Lisa Robins, Deutsche Bank, Intra-Asian Trade, Transaction Risks, AEC Lisa Robins, Deutsche Bank, Intra-Asian Trade, Transaction Risks, AEC
|