Review of China's Listed Banks and Outlook archive
| 2011 Review of China's Listed Banks and Outlook |
According to the EY report, 2011 Review of China’s Listed Banks and Outlook, the rapid growth of the Chinese banking industry may be hard to sustain due to the reduced growth rate of the national economy, steady advances in market-oriented interest rate reform as well as tightened capital restrictions. Therefore, Chinese banks must make it a top priority to change patterns of development, promote business transformation and offer diversified banking services to meet the needs of the real economy.
| 2010 Review of China's Listed Banks and Outlook (media release) |
According to our study, more stringent regulatory requirements on capital adequacy will lead commercial banks to accelerate their business transformation. This entails a focus on their business model and less reliance on asset growth, and increasing non-interest income from business areas requiring less capital consumption, in particular areas such as Cash Management, Credit & Debit cards, Investment Banking, Private Banking and E-banking services. The new standards for liquidity will make it more difficult for banks to derive large-scale profits from exploiting liquidity mismatches between deposits and loans. However, the strengthened regulatory supervision framework will help reduce liquidity risks for banks, and therefore benefit the long-term growth of the Chinese banking sector.