East & Partners

Hot corporate banking products downunder

(Australia) – Early output from a 6-monthly analysis of banking product engagement amongst Australia’s Top 500 corporates shows Call Money Market, Cash Management and Spot FX to be the most popular banking products in corporate Australia.

Of the 27
product sets monitored in East & Partners’ 6-monthly Corporate Banking
Market Analysis service, these 3 are engaged by 100 percent of the Top 500
corporates in the Australian markets, followed closely by core Transaction
Banking services and Debt products with Bonds being the least commonly
used.

These are
important measures of where corporates look for service performance from
their bankers and where real demand in the market is focussed. Notably,
the use of Particular Industry Expertise from their corporate bankers
along with Corporate Advisory Services generally have remained very high
areas of service engagement for the banks and represent two of the
critical "relationship" deliverables in the eyes of corporate
CFOs.

Market
Wide Product Engagement by Corporates
%
of Top 500 Using
June
2002
December
2001
+/-
%
Cash
Management, Debt and Bonds
Call
Money Market
100.0 100.0 —
Commercial
Paper
85.7 84.5 1.4
Cash
Management
100.0 100.0 —
Short
Term Domestic Debt
85.1 83.9 1.4
Short
Term FX Debt
60.9 63.3 (3.8)
Long
Term Domestic Debt
81.4 78.4 3.8
Long
Term FX Debt
34.1 32.8 4.0
Trade
Finance
56.4 52.1 8.3
Corporate
Bonds
28.3 29.4 (3.7)
Government
Bonds
13.4 14.6 (8.2)
Project
and Structured Financing
42.5 44.3 (4.1)
Treasury
and Financial Markets
Spot
FX
100.0 100.0 —
Forward
FX
77.1 70.4 9.5
Forward
Rate Agreements
74.9 72.0 4.0
Swaps 68.0 66.1 2.9
Futures 46.0 42.8 7.5
Options 66.5 62.9 5.7
Corporate
Finance and Advisory
Equity
Raising
24.0 22.5 6.7
Particular
Industry Expertise
99.1 99.2 0.1
Corporate
Advisory Services
97.4 94.1 1.0
Merger
and Acquisition Advice
49.0 47.5 3.2
Capital
Structuring
43.8 41.9 4.5
Transaction
Banking
Domestic
e-Banking
99.4 98.7 0.8
International
e-Banking
85.1 83.9 1.4
Payment
Processing
90.7 87.1 4.1
Remittance
Processing
85.8 83.5 2.8
International
Transaction Banking
93.7 91.3 2.6
East
& Partners Pty Ltd, June 2002 Australian Corporate Banking
Markets Service

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Our collective knowledge and experience across global  markets helps us guide clients on the intricacies of each region while enabling cohesion across their global footprint. Apples with apples and pears with pears in complex and demanding financial services markets
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