(15 October 2015 – Hong Kong) Chinese banks have been expanding faster internationally than their counterparts in the Asia Pacific region says ratings agency Fitch.
The growth of banks based in China has been in absolute terms, around $US400 billion (A$545.4 billion) since 2010 – twice as much as Japanese banks, followed by Singaporean banks.
Significantly, the agency’s Chart of the Month released this week illustrates that foreign expansion of Asia Pacific banks has been a growth trend over the last decade.
Included in the region's attraction are factors such as better access to regional markets, long-term growth potential of a rising middle class as well as China and the trade linkages.
Fitch said “Singaporean and Malaysian banks have the largest exposure by loans and profit from foreign sources, followed by the Japanese mega banks and China's most international bank – Bank of China,”
“The Chinese banks have been growing at a much more rapid pace – but off a lower base, and are therefore less exposed.”