(15 November 2016 – Australia) Westpac has announced that it would reduce lending exposure in Asia as a result of strong headwinds and slowing corporate activity.
Westpac said in a statement it would “simplify processes and remove duplication” at its institutional division in Asia.
The bank added that it would cease offering new mortgages over property in Australia and New Zealand to Singapore and Hong Kong customers, including expats.
“The market environment remains challenging for international banks globally and in Asia,” a spokesperson for the bank told reporters.
“Generally lower levels of corporate business activity have led to reduced volumes and put downward pressure on returns.”
Westpac's announcement follows Australian rival, ANZ, which recently sold its retail and wealth arms in five Asian countries to Singaporean bank DBS. The bank also reduced the size of its institutional loan book in the region.
Three international banks dominate the Asian market, according to East & Partners Asia Asian Transaction Banking report. The banks, Standard Charted, HSBC and Citigroup account for about 52 percent primary transaction banker market share.