Managing growth in retail financial services in a credit downturn Publication Date: 7 January 2009 Category: Country Reports | Regional Surveys Consumer credit and debt recovery | Retail Banking Total No. of Figures/Tables: 20 Publication Price: US$ 1800

ABOUT THIS DOCUMENT

During the last five years most financial institutions in our region have prospered. The industry across Asia has seen unprecedented expansion in its consumer credit portfolio, which now accounts for 35% of total assets according to Asian Banker Research. However, the situation has been changing during 2008. Consumer banking is about to come under significant pressure.

Compounded by the macroeconomic downturn, higher cost of funds, persistent cost inefficiencies, increasing credit defaults and the impact of severe mis-selling practices is likely to hit banks hard, putting to test their resilience and sustainability.

Many of the orthodox approaches that banks have relied on in the past may have to undergo rethinking. It is clear that 2009 will likely be a watershed period for the banks in the region in terms of establishing long term sustainability and high quality growth.

By engaging with key retail banking executives from Hong Kong, Singapore, Australia, Taiwan, Japan, Malaysia, Thailand, Indonesia, India and China, this report presents the latest findings on how players adjust at a tactical and operational level to the current market downturn.

The report integrates a peer to peer industry survey among senior key executives.