More challenging times ahead for APAC banks
The Asian Banker observed a significant slowdown in banks’ profitability, liquidity and asset quality from last year, as the industry’s aggregate strength score also declined. October 03, 2013 | Foo Boon PingNow into its 12th iteration, The Asian Banker 500 ranking continues to evolve as the financial services industry’s most comprehensive annual evaluation of the strength, quality and sustainability of the balance sheets of banks in the Asia Pacific. This year we have introduced a forward-looking element called the “Bank Watch List” into the evaluation with the aim of providing a holistic 360 degree view of the ranking. Hong Kong banks again showed that they are the strongest in the region. Hang Seng Bank possesses the strongest bank balance sheet this year, on the back of stronger asset and profit growth, even as it maintained a high level of capital adequacy, asset quality and liquidity. Singapore and Malaysian banks such as OCBC, UOB and Maybank also achieved big leaps in this year’s ranking, moving into the Top 10 with solid performance across the six evaluation parameters. Amid the improvements that the chart-topping banks have made, the latest ranking also showed an overall downtrend in the financial performance of Asian banks in 2012. This is a marked difference to the rapid growth seen in 2011. And as events have unfolded so far in 2013, the industry is headed for another challenging year ahead. We observed a significant slowdown in banks’ profitability, liquidity and asset quality from last year. The industry aggregate strength score has also declined, reflecting comparatively higher stress on banks’ balance sheets. The outlook for the industry is mired in uncertainty as the combination of a slower rate of economic growth, continuing volatility in capital and liquidity flows and the spectre of a worsening credit cycle conspire to increase the potential for greater instability in the region’s banking systems. Banks in the region continue however to be well capitalised and funded. In The Asian Banker’s latest print journal (Issue 122) we cove... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asia Pacific, Asian Banker 500, Cash, Treasury & Trade, Operational Risk, Risk and Regulation, Trade Finance, Transaction Bankingasia pac,Asian Banker 500,cash,Oprisk,Risk and Regulation,Trade Finance,Transaction Banking, Asia Pacific,Asian Banker 500,Cash, Treasury & Trade,Operational Risk,Risk and Regulation,Trade Finance,Transaction Banking, Keywords:Sibos 2013, Hang Seng Bank, OCBC, UOB, Maybank, Liquidity Risk, Djohan Emir Setijoso, Bank Central Asia Sibos 2013, Hang Seng Bank, OCBC, UOB, Maybank, Liquidity Risk, Djohan Emir Setijoso, Bank Central Asia
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