Are global banks dead or just refocusing on home markets?
Juultje van der Wijk, global head of trade finance services at ING Group, feels that banks will focus on their home markets and areas where they have a strong foothold. November 12, 2012 | Baron LaudermilkRecently, we have been seeing banks step back and rethink their offshore strategies as the world's economy continues to struggle and new regulations bring new challenges. This has clearly caused global banks to spend more time on their home markets where they have a strong foothold in, and forced a rethink of future expansions and areas where they are vulnerable. Juultje van der Wijk, global head of trade finance services at ING Group, said that ING and other international banks are going to choose the markets that they invest in more cautiously and abandon those that they are weaker in. This will ultimately change the definition of “global banks” and bring about more regional sized banks which attempt to further build their presence in markets they already dominate. Wijk also stated that ING Group has been rethinking the way it expands into offshore markets. Despite the fact that some global banks are expanding in China,, ING Group will continue to service their core clients through a select number of branches and operate through their share holding in a Chinese bank, (Bank of Beijing) instead of going all the way by establishing retail branches. In 2005, ING Group acquired 19.9% in Bank of Beijing, allowing it to acquire two seats in the current 15-person board of directors. Michel Tilmant, ING Group Chairman, said at that time, “This investment will allow ING to deepen its penetration into the Beijing market, and provides us with a platform to sell a range of insurance and investment products to an increasingly affluent customer-base.” Since then, ING Group has invested in Bank of Beijing's insurance and private banking businesses. ING has yet to make its move to fully tap into the Chinese market by acquiring a retail license, preferring instead to transfer most of its risks onto Bank of Beijing. According to Wijk, ING Group will be better off focusing in its own market in Europe and leverage on its strengths in countries such as I... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Islamic Banking, Retail Banking, SME Banking, Trade Finance, Transaction Banking, Wealth ManagementIslamic Banking,retail,SME Banking,Trade Finance,Transaction Banking,Wealth Management, Islamic Banking,Retail Banking,SME Banking,Trade Finance,Transaction Banking,Wealth Management, Keywords:ING Group, Juultje Van Der Wijk, HSBC, Bank Of Beijing, Hiromasa Nagamine, SMBC, Vagner Vichiesi, Banco Do Brazil, Albert Yu, BMO, BofA ING Group, Juultje van der Wijk, HSBC, Bank of Beijing, Hiromasa Nagamine, SMBC, Vagner Vichiesi, Banco Do Brazil, Albert Yu, BMO, BofA
|