Bankers focus on Asian and African growth
Banks worldwide are focused on Asia as the number one region for growth, according to the annual Barclays Corporate Global Banking Survey.
Africa is seen as providing “significant” growth opportunities, while the potential for growth in Europe and North America has become “very limited”.
However, the majority (61%) of respondents expect the US dollar to be the world’s reserve currency in 10 years’ time, with 21% of bankers questioned predicting that China’s Renminbi (or yuan) will take its place within a decade.
Matt Tuck, global head of financial institutions at Barclays, says the survey demonstrates just how focused on Asia the global banking industry has become, with Asia also predicted to be the dominant centre for global trade flows over the next 12 months.
According to Mr Tuck: “There is huge work being done by global banking groups to capitalise on the unrelenting economic growth in Asia.”
He adds: “While this trend has been evident for more than a decade, it appears to be accelerating in the financial world as growth amongst developed nations remains sluggish.”
Meanwhile, with the industry becoming increasingly mobile and selective over where it targets growth, the focus on Africa, in particular, continues to gather pace.
The survey also reveals a positive trend for those seeking more competition in the banking industry, with 89% of respondents expecting improvements in this areas over the next two years.
Barclays’ study involved 200 respondents from major banking groups in North America, the UK, Europe, Asia and the Middle East.