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BANKING: TOWARDS A NEW WORLD ORDER
Global banking in 2050
The recent global financial crisis shook the world economy and set in motion significant changes to the banking industry. While The emerging economiesí banking sectors are expected to outgrow those in the developed economies by an even greater margin than it was projected before the financial crisis, banks in China and India showcase a new world order.
Issue Date - 22/12/2011
 
Change in fortunes

According to the projections, there seems to be a major change in domestic banking assets of the countries in the far flung future. The reasons are quite obvious. European and American economies are expected to take considerable amount of time to get out of the slowdown and the negative economic sentiment. Poor asset quality and inadequate liquidity is of no help either. Meanwhile, rapidly developing economies like India and China might topple these giants with the expansion of banking industry. Both these countries have a huge untapped market. More so in case of India where almost half the country still does not have a banking account and 93% of the rural market is yet to be tapped by the commercial banks. Simply put, huge opportunities are waiting.

 
Lionís share for the dragon

As per projections by PricewaterhouseCoopers, China will emerge as the clear winner in terms of countriesí share in global banking assets, while remaining brick countries will enter the list of top 10. Interestingly, India and China may jointly command a share of over 35% in the global banking assets by 2050, while US, Japan and western Europe might not be able to defend their present market share. The newly emerging economies, particularly Vietnam and Nigeria are also expected to come to lime light with relatively fast growth rates over time. However, considering that itís still four decades far, a lot will depend on to what extent these countries pursue the ongoing growth-friendly policies.

          

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