Foreign Banks in China

Comments

Transcription

Foreign Banks in China
Business Study Mission
Shanghai / Suzhou, December 2002
Foreign Banks in China:
Critical Success Factors and
Lessons Learnt
Nanyang Technological University, Singapore
Corporate Day, 19th September 2003:
Arati Varma
Susann Naomi Bhatti
Masayoshi Odaka
Gabriel Rüeck
Setting the Stage
What is your estimation of the market
share
foreign
banks
in foreign
China?
Marketofshare
of the
200+
banks in total current assets: only 2%
2%
100%
98%
2
Agenda







Project Overview
Our Mission in Shanghai
Current Situation in China
Deutsche Bank AG
Banking in China
Conclusions
Q&A
3
Project Overview
2% Market Share
Research on Financial
Sector in China
BSM
Comparison with the
Environment in Singapore
Verification and Discussion
of Findings with Experts
Summarise Findings and draw Conclusions
4
Project Overview – Mission in Shanghai
Verify:



Economic parameters
Competitive environment
Regulatory framework
Discuss:






Deutsche Bank AG
Bank of America
DBS Bank
Dresdner Bank
Bank of Communications
gic AHK DIHK



Managers of MNCs
Government Officials
Academics
5
Current Situation in China
Gradual Opening of the Financial Markets:
Today
Geographical and product related restrictions on
foreign banks’ business
2001
China signed the accord for admittance to the WTO
2002
Market for all foreigners (enterprises & individuals)
open to RMB business, subject to grant of license
2007
Unrestricted RMB business
with all Chinese (enterprises & individuals)
6
Deutsche Bank AG







Among the top 20 FIs worldwide
Market Capitalization: € 48.8 billion
Total Assets: € 918 billion
95,000 staff in 2,300 offices worldwide
3 Divisions: CIB, PCAM and CI
APAC is an integral part of the bank’s strategy
Regional HO in Singapore
-
operates under a wholesale banking license
7
Deutsche Bank AG - China
1995: Representative Office in Shanghai
1999: Branch status granted
2002: RMB License granted



3 Offices: Shanghai, Beijing and Guangzhou
100 employees in China
Business primarily with foreign corporate
clients
8
Foreign Banks in China - threats:







Limited scope of business
“Immature” legal framework
Frequent change in PBOC regulations
Insufficient risk management tools
Telecommunications and infrastructure
Human resources
Importance of “Guanxi”
9
Foreign banks - opportunities:


No obligation to lend to SOE
Leverage on expertise:
-
Consumer credits
Credit cards
Asset management and pension funds
E-banking
Investment funds
International transactions
10
Foreign banks - challenges:






High cost for business operations
Small customer base – foreign companies
Lack of licenses limits business opportunities
No access to local currency deposits
Scantiness of company audits
Missing network of relationships
11
Foreign banks - leverage on strengths:







Attractiveness to local staff
Large product range
Access to foreign currency market
Higher quality of products and services
Efficient operations
International Experience
Transparency
12
Conclusions







Long-term strategy necessary (10 years)
No short-term profits possible
Start small (foreign enterprises)
Focus on niche markets
Organize information flow from PBOC
Do not underestimate the government
Diligent selection of banking partners
13
Q&A
谢谢!
Thank you!
“Know the other side, know yourself, and your victory
will not be threatened. Know the terrain, know the
weather, and your victory will be complete.”
Sun Zi
14

Similar documents