APAC-BFSI-Outlook-2017

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Capital & Liquidity
Risk & Reporting
Governance & Reforms
BASEL 3 BASEL Corporate
Governance
Consumer
Protection Measures
Capital adequacy /
bu ers
Stress testing / leverage
ratio
Liquidity Risk /
Coverage ratio
Increase scrutiny /
lending norms
Distressed assets
nofication guidelines
1
3
2
Financial reporting
(IFRS)
Foreign account tax
compliance (FATCA)
Anti money laundering
Know your customer
Risk management
Consolidations,
standardizing
operations /
remunerations /
incentives
Shadow banking
controls
Shadow banking
controls
Organization of foreign
a liates
Source: Cushman & Wakefield Research
Asia sees rise of regional banks
Asia’s ascendance in the global
economy has propelled the growth of
international financial institutions in the
region. As the banking and financial
services industry flourished, regional
players, largely domestic heavyweights,
also entered the competition. They grew
swiftly by tracing regional trade flows
and following their clients and business
partners across Asia in the years leading
up to the GFC.
The GFC slammed the brakes on cross-
border lending worldwide. In Asia,
however, the crisis also created a golden
opportunity for the region’s banks.
Unlike the rest of the world,2 Asia-
Pacific rapidly recovered from the fall-
off in international lending, with Asian
banks accounting for a rising share of
cross-border credit in the region – from
31% in 2007 to 57% in 2014.3 With
global lenders retrenching from Asia,
the post-GFC recovery period was
an opportune time for regional banks
to put their strong balance sheets to
good use. Moreover, the tightening of
global regulations has hardly limited the
aggressive expansion of the region’s
banks; Moody’s Investors Service found
in mid-2015, for instance, that banks
within the Association of Southeast
Asian Nations are well-capitalized and
able to comply with stricter rules under
Basel III.
2
3
Source: Cushman & Wakefield Research
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Prime Rent (USD/Sf/Year)
MOST EXPENSIVE OFFICE LOCATIONS IN THE WORLD
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