| Home / English Column / Business (new) / In Industry / Finance | Tools: Save | Print | E-mail | Most Read |
| Lenders Gear up for Competition Over Private Banking |
| Adjust font size: |
Domestic lenders and their overseas counterparts are facing harsh competition in the private banking and wealth management sectors, which will be deregulated at the end of 2006. Bankers and scholars yesterday said a reshuffle in the sector is unavoidable and domestic players, even though doing their utmost to maintain their grip, are likely to lose affluent customers to their foreign competitors. But participants at yesterday's Competition is expected to mainly focus on the 20 percent of affluent customers who contribute 80 percent of revenue for banks, said Li Ruoshan, a professor with "And apparently foreign banks have an edge in the sector," he said. But he was quick to add that "foreign lenders will be not 'acclimatized' for about three to five years" because of the lack of transparent information, mature inner control system, and sound credibility system in Lin Yongyuan, deputy general manager of personal banking at the Shanghai Pudong Development Bank, said domestic players are actively preparing. He said domestic and foreign lenders will have equal opportunities when the financial sector fully opens up. "It's likely domestic banks are not yet fully geared up, but I am sure they are busy preparing," he said. In terms of foreign players, he said overseas lenders also lack confidence about deregulation. "Foreign banks are researching how to acquire a bigger share of the market, and studying to what degree the banking regulators will open the market," he added. "Local banks have the home arena advantage," said Zhao Xinge, associate professor of finance with the He said the renminbi is not a freely converted currency, which puts a major obstacle by the way of business expansion by foreign banks. (
|
| Tools: Save | Print | E-mail | Most Read |
 |
| Related Stories |
|
| ? |
