(23 January 2012 – Asia) HSBC’s Group general manager Regional head of Commercial Banking Noel Quinn said banks will have to intensify their transaction banking platforms as Asian businesses do more cross-border trade.”Asian businesses will continue to be a key engine of growth for the region – generating income, jobs and growth opportunities for Asia’s fast-growing economies,” Quinn said.
“What’s interesting is that Asian businesses are evolving to become increasingly international – they are doing more cross-border trade, investing overseas or expanding outside their home markets.”
As trade and capital flows shift to emerging markets such as Asia, businesses have the opportunity to grow within and across the region – as reflected by the continued growth in intra-regional trade and investments.
Riding on these trends, Asian businesses will continue to require international trade finance, financing options, investment advice and efficient transaction banking platforms.
Macquarie Securities head of Financials Research in Asia said the developing markets have attractive structural stories that should allow decent growth for the sector over the next several years.
Strong domestic demand will help prop up growth, as private consumption and an investment cycle kick in. Indonesia, for example, has an extremely low loan penetration rate, as reflected by a loan to GDP of 28 percent, while retail lending as largely untapped.