News

The region is expected to account for over a third of trade flows by 2020.

Deposits to current and savings accounts jumped 9-13 ppts over 10 years.

And Fifth Third Bancorp is set to buy MB Financial for $4.7b.

However, a growing preference of China’s HNWI for closer wealth managers is fast narrowing the gap.

Gross NPAs climbed from 8.93% in September to 10.14% in March.

The sector bore $16.03b in bad loans as of end-March.

Stable savings and demand deposits buoyed healthy capitalisation levels.

Banks have been studying how to forge closer economic ties with the North.

Intense Western competition is adding to the banking sector’s growing list of woes.

However, the growing preference of Chinese wealthy for Hong Kong is challenging its dominance.

Moody’s notes that there are limits to how much banks can substitute for lower shadow credit levels.

The impact spares no market in either developed and emerging Asia.

MUFG Bank will cut the branch numbers by 20% whilst Mizuho will close around 100 domestic locations.

NPLs for the ‘Big Five’ largely fell whilst those for smaller rural commercial banks rose to 3%. As the country’s largest lenders enjoy enhanced profitability from lower bad loan levels brought about by a macro-economic recovery, smaller lenders have not emerged unscathed as they bear the brunt of defaults and rising interest rates.

The local market is expected to be worth $44b by 2020.

It will require data collection of RMB business activities and deposit rates to be rationalised.