Financial Services

As a result of limited global integration, a strong reliance on domestic deposits and a risk-averse regulatory framework, Ghana’s banking sector has weathered the global financial crisis largely unscathed. In fact, most of the sector’s key indicators improved over the course of 2010.

A proposal to merge the operations of the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) appears to be gaining momentum, with stock market officials discussing a plan that could result in the creation of a powerful regional bourse better positioned to compete with nearby rivals and larger international operators.

Solid economic growth bodes well for Indonesia’s insurance sector, with forecasts that insurance premium and total asset levels will increase over the medium term. It is possible, however, that many of the smaller players in the market could be squeezed as competition for clients, especially in the life segment, heats up.

Despite sluggish global market conditions, banks in Ras Al Khaimah are showing strong returns. The National Bank of RAK (RAKBANK) posted a net profit of Dh1bn ($272.3m) for 2010, a 38.1% increase over 2009, according to year-end results released on January 30.

Brunei Darussalam’s Islamic financial sector is set to expand in the coming years, following a series of advances that will strengthen its operational and regulatory base and bridge some of the gaps that have restricted the development of new products and services.

Malaysia’s central bank is considering raising the statutory reserve requirement (SRR) to slow the influx of hot money into the economy, but some in the sector fear that the move could impact loan activity and result in economic slowdown.