Basking in an environment of rising demand for credit in a growing economy, Indonesia’s banks have become some of the most profitable in the world. In recent weeks, two of the big three global ratings agencies have given the banking system a strong vote of confidence. However, there is also a downside. The sector could be hit by rising non-performing loans (NPLs) and changes in government policy that could affect the rupiah.
Displaying 3547 - 3552 of 4356
Economic update | Indonesia: Banking growth
22 Mar 2013
Economic update | Myanmar: Banks open up
20 Mar 2013
As part of the rapid liberalisation of Myanmar’s economy, the banking sector is now opening up to foreign participation. The government is enacting reforms to promote foreign participation in the sector, while the US has recently lifted restrictions on four local banks. With the economy both fast-growing and underbanked, and with foreign investment on the rise, the opportunities for international institutions could be considerable.
The Qatar Central Bank’s (QCB) February takeover of responsibility for licensing and supervising insurance companies, reinsurance companies and insurance intermediaries, part of an effort to streamline doing business in the country, should enhance regulation and level the playing field for insurance companies.
With regional integration of the financial services industry drawing closer, analysts are warning Thailand’s banks to strengthen their position at home or risk being swallowed up by rivals once the Association of South-east Asian Nations (ASEAN) Economic Community is launched in 2015.
Key reforms implemented in the aftermath of the 2008-09 financial crisis have created a more flexible and resilient banking sector, just as the economy entered a period of slow growth in 2012. While the sector has expanded dramatically over the past two years, banks faced a liquidity squeeze in 2012 that has reduced the pace of growth. Over the long term, however, Mongolia’s leading banks stand...
Economic update | Mongolia: Bond gamble heats up
18 Mar 2013
Funds raised through Mongolia’s first national bonds are set to have an impact on the wider economy, with the government announcing in February that fournew major projects will benefit from the so-called“Genghis” bonds. However, critics still fear the issuance could back fire.