Asia Pacific Banking Industry Outlook

We periodically publish industry outlook by country and by business segments for the region. We cover significant changes in the banking industry and our research analysts provide projections as well.

This document contains the following contents:

• 2016
• 2015
• 2014
• 2013
• 2012
• 2011
• 2010

Market	Topic	Content	Date of publication	Format

Market	Topic	Content	Date of publication	Format

Market	Topic	Content	Date of publication	Format
Australia	Country Outlook	Banks focus on APRA’s forthcoming liquidity reforms to manoeuvre key elements of Basel III liquidity framework amid market pressure	Mar 31, 2014
Bangladesh	Country Outlook	High NPLs, much of which deemed unrecoverable, lead to shortfall of capital	Mar 31, 2014
Brunei	Country Outlook	Though overall performance strong, banks need to be agile in structuring products in changing environment	Mar 31, 2014
China	Country Outlook	Government to allow market forces to drive efficiency while restructuring economy through regulation	Mar 31, 2014
Hong Kong	Country Outlook	Banks face rise in interest rates, capital outflows and higher credit risks in China	Mar 31, 2014
India	Country Outlook	RBI promises to revitalise banking sector, improve financial inclusion and increase competitiveness	Mar 31, 2014
Indonesia	Country Outlook	Strict sanctioning from BI expected to keep asset quality and capital adequacy intact amid pressure from USD	Mar 31, 2014
Japan	Country Outlook	Positive spill-over from Abenomics yet to translate into profits for Japanese banks	Mar 31, 2014
Korea, South	Country Outlook	Though well capitalised with low NPLs, banks face declining home lending growth and lack of investment from SMEs	Mar 31, 2014
Malaysia	Country Outlook	As household income struggles to match rising debt levels, banks find it a challenge to achieve higher earnings growth	Mar 31, 2014
Pakistan	Country Outlook	High NPLs, inflation and rising fiscal deficit require decisive action by SBP to enable rebound in banking sector	Mar 31, 2014
Singapore	Country Outlook	Persistent low interest rates, loan growth suppression and increased competition drive down profits	Mar 31, 2014
Sri Lanka	Country Outlook	Sri Lankan banks diversify and consolidate to build stronger, more coherent financial sector	Mar 31, 2014
Taiwan	Country Outlook	SMEs’ 85% contribution to GDP may increase if trade with China and ASEAN enables offshore expansion	Mar 31, 2014
Thailand	Country Outlook	BoT moves to curb inflation, liberalise domestic financial services industry and spur regulatory reform	Mar 31, 2014
The Philippines	Country Outlook	Banks expected to remain healthy while preparing for ASEAN integration and Basel III compliance	Mar 31, 2014
Vietnam	Country Outlook	Low transparency, high cross-bank ownership, lax accounting standards and rising bad debt impede long-term prospects	Mar 31, 2014

Market	Topic	Content	Date of publication	Format
China	Country Outlook	Slowing activity and stubbornly high inflation show up weaknesses in China’s economy while anticipated reform to the current financial system together with global economy uncertainty create challenges for its stability oriented economy and banking sector.	Apr 12, 2012
Thailand	Country Outlook	Devastated by the floods in Q3 2011, the Thai economy has bounced back on strong 9.4%YoY reconstruction loans growth, 12%YoY higher fee income and lower tax rates.	Apr 25, 2012

Market	Topic	Content	Date of publication	Format
Australia	Country Outlook	With the increasing global macroeconomic volatility and expected slowdown in capital inflows, banks are shifting towards deposits as a safer and more sustainable form of funding.	Apr 12, 2012
Hong Kong	Country Outlook	Banking sector will see more opportunities in the area of Rmb trade settlement, the main driver for profit in 2012, but expect a decline in growth momentum due to the weakness in the U.S. economy and the European debt crisis.	Apr 06, 2012
Japan	Country Outlook	Although Japan managed to recover strongly after of the natural disasters in March 2011, high domestic political risks and competition coupled with external volatility of the global economy will hinder the nation’s and its banking sector’s recovery.	Dec 12, 2011
Malaysia	Country Outlook	Domestic consumer and credit demand sustains performances of Malaysian banks against economic downturn, while regulatory initiatives are put in place to ensure sustainability of banking sector	Apr 06, 2012
Singapore	Country Outlook	Stagnating domestic demand coupled with inability to expand regionally are expected to dent Singapore banks’ profitability in the near future	Dec 07, 2011
South Korea	Country Outlook	With an export orientated economy, South Korea will see a huge decrease in loan growth in tandem with the declining export demand, especially from US and EU.	Dec 28, 2011
Taiwan	Country Outlook	Taiwanese banks are looking forward to a better cross-strait relationship with China and increasing demand for cross-border financial services in emerging markets	Jan 09, 2012
Thailand	Country Outlook	With robust fundamentals in place, Thai banks are set to recover along with the country’s economy from the massive damage inflicted by the monsoon flooding	Apr 06, 2012

Market	Topic	Content	Date of publication	Format
Bangladesh	Country Outlook	State-owned commercial banks prepare to commercialise as the country readies itself for the introduction of Basel II.	Dec 01, 2010
Brunei	Country Outlook	The sleepy Bruneian market, staring down an era of stagnancy, has not broken free from oil.	Dec 01, 2010
China	Country Outlook	The lending boom that is keeping the domestic economy afloat is unlikely to slow considerably in the near-term - financials (non interest income)	Dec 01, 2010
Hong Kong	Country Outlook	Hong Kong banks have resisted the shaking out that is staring them in the face - financials (deposit growth)	Dec 01, 2010
India	Country Outlook	After years of falling market-shares the crisis prompts consumers to seek safety in state owned banks - financials (credit to deposit ratio)	Dec 01, 2010
Indonesia	Country Outlook	While interest rates are coming down, compressing the country’s broad margins slightly, fundamentals are strong - financials (loans, NPL ratio)	Dec 01, 2010
Japan	Country Outlook	A busy shaking out in 2009 has changed the playing field significantly, especially for the largest banking group in Asia - financials (credit cost, net income)	Dec 01, 2010
Malaysia	Country Outlook	Banks remain strong and profitable, although Maybank and the foreign banks have been hit - financials (loans, NPL ratio)	Dec 01, 2010
Pakistan	Country Outlook	Pakistan’s banks, having made a career of resilience in their home markets, are now on the defensive	Dec 01, 2010
Philippines	Country Outlook	Despite major economic setbacks in 2009, the financial services industry is rich in initiatives	Dec 01, 2010
Singapore	Country Outlook	Singapore banks will need to come up with solutions to turn their ample capital into top-line growth - financials (loans, NPL ratio)	Dec 01, 2010
South Korea	Country Outlook	Against their natures, Korean banks are looking out more than they are looking in - financials (deposits, loans, interest rate)	Dec 01, 2010
Sri Lanka	Country Outlook	Banks may lose out on opportunities if they cannot solve deep fundamental problems on cost and management - financials (inflation)	Dec 01, 2010
Taiwan	Country Outlook	Squeezed by business conditions on one side, Taiwan’s banks stand to benefit from a warming of relations with China - financials (stock market capitalization, lending interest rate)	Dec 01, 2010
Thailand	Country Outlook	Thai banks manoeuvre through the crisis by growing fee income, with benefits from a government stimulus package coming - financials (net profit, profit growth)	Dec 01, 2010
Vietnam	Country Outlook	A surge in lending, especially to the SME sector, in 2009 can only lead to a flood of capital-raising in 2010	Dec 01, 2010

Market	Topic	Content	Date of publication	Format
Australia	Country Outlook	Australian banks are likely to see bad loans surge in 2009, having previously kept them to a minimum	Dec 01, 2009
Bangladesh	Country Outlook	Banks in Bangladesh will need to increase their capital, as the country steps up its fi nancial sector reforms	Dec 01, 2009
Brunei	Country Outlook	Brunei still needs to implement new banking regulations if it is to develop as a fi nancial centre	Dec 01, 2009
China	Country Outlook	Global economic downturn will prompt Chinese banks to shift their business focuses	Dec 01, 2009
Hong Kong	Country Outlook	A sense of unease continues to hang over Hong Kong’s banking industry despite solid underlying fundamentals	Dec 01, 2009
India	Country Outlook	Interest rate cuts may not be enough to sustain domestic demand, as a sharp downturn is predicted	Dec 01, 2009
Indonesia	Country Outlook	Ebbing liquidity, credit growth, and profi ts will test the banking sector’s post-1997 mettle	Dec 01, 2009
Japan	Country Outlook	Large bad loan clean-ups and weak domestic demand will hurt Japanese banks	Dec 01, 2009
Malaysia	Country Outlook	After a period of new regional expansion, Malaysian banks are looking to Islamic fi nancing in search of opportunity	Dec 01, 2009
Pakistan	Country Outlook	Political and economic woes and higher lending rates will put pressure on Pakistani banks’ asset quality	Dec 01, 2009
Philippines	Country Outlook	Economic and fi nancial indicators are again heading south, but bank capital reserves and asset quality remain buoyant so far	Dec 01, 2009
Singapore	Country Outlook	With the real economy sliding into recession, Singapore banks need to readjust for a more sustainable future	Dec 01, 2009
South Korea	Country Outlook	Authorities are busy with crisis management fi refi ghting, but sticking to market liberalisation plans	Dec 01, 2009
Sri Lanka	Country Outlook	Continued confl ict and rocketing infl ation make Sri Lanka one of the world’s most vulnerable economies	Dec 01, 2009
Taiwan	Country Outlook	Taiwan’s banks will hope closer relations with the mainland can compensate for slower domestic growth	Dec 01, 2009
Thailand	Country Outlook	On top of global fi nancial crisis fallout, Thai banks will also have to deal with domestic political instability once again	Dec 01, 2009
Vietnam	Country Outlook	After fi ghting high infl ation and overheating, monetary authorities must now grapple with a sudden economic downturn	Dec 01, 2009