nanyang technological university, singapore corporate day, 19 th september 2003: arati varma susann...
TRANSCRIPT
Nanyang Technological University, Singapore
Corporate Day, 19th September 2003:Arati VarmaSusann Naomi BhattiMasayoshi OdakaGabriel Rüeck
Business Study MissionBusiness Study MissionShanghai / Suzhou, December 2002Shanghai / Suzhou, December 2002
Foreign Banks in China:Foreign Banks in China:Critical Success Factors and Critical Success Factors and Lessons LearntLessons Learnt
22
Setting the Stage
Market share of the 200+ foreign banks in total current assets: only 2%
100%
98%
2%
What is your estimation of the market share of foreign banks in China?
33
Agenda
Project Overview
Our Mission in Shanghai
Current Situation in China
Deutsche Bank AG
Banking in China
Conclusions
Q&A
44
Project Overview
Research on Financial Sector in China
Comparison with the Environment in Singapore
Summarise Findings and draw Conclusions
Verification and Discussion of Findings with Experts
2% Market Share
BSM
55
Project Overview – Mission in Shanghai
Verify: Economic parameters Competitive environment Regulatory framework
Deutsche Bank AG Bank of America DBS Bank Dresdner Bank Bank of Communications gic AHK DIHK
Discuss:
Managers of MNCs Government Officials Academics
66
Current Situation in China
Geographical and product related restrictions on foreign banks’ business
Today
China signed the accord for admittance to the WTO2001
Market for all foreigners (enterprises & individuals) open to RMB business, subject to grant of license
2002
Unrestricted RMB businesswith all Chinese (enterprises & individuals)
2007
Gradual Opening of the Financial Markets:
77
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
88
Deutsche Bank AG - China
3 Offices: Shanghai, Beijing and Guangzhou 100 employees in China Business primarily with foreign corporate
clients
1995: Representative Office in Shanghai
1999: Branch status granted
2002: RMB License granted
99
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”
1010
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
1111
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
1212
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
1313
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
1414
Q&A
谢谢谢谢 !!Thank you!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