5916 Group assignment.pdf - Oversea-Chinese Banking Corporation Limited BFF 5916 International Banking Group assignment Thursday 2pm-5pm Qianyun Sun

5916 Group assignment.pdf - Oversea-Chinese Banking...

This preview shows page 1 - 5 out of 18 pages.

Oversea-Chinese Banking Corporation Limited BFF 5916 International Banking Group assignment Thursday 2pm-5pm Qianyun Sun 24890804 Zhuoya Tong 27400964 Jin He 27350657 To Lecturer: Simon Yap Monash University
1 Table of Contents 1. Introduction ................................................................................................................... 2 2. The financial integration impact for Malaysia, Singapore and Thailand (banking sector) ................................................................................................................................................ 2 3. Banking Performances in Singapore of OCBC in last 5 years .......................................... 3 3.1 Return on Equity ...................................................................................................... 3 3.2 Net interest margin ................................................................................................... 3 3.3 Cost-to-income ratio ................................................................................................. 4 3.4 Net-performing loan ................................................................................................. 4 3.5 Capital adequacy ratio ............................................................................................. 5 4. Influencing characteristics of banking performance ........................................................ 5 4.1 Financial crisis ......................................................................................................... 5 4.2 Price level and interest rate ....................................................................................... 6 4.3 Banking industry level .............................................................................................. 6 4.4 Political system level ................................................................................................. 7 5. Comparison in ASEAN Region ....................................................................................... 8 5.1 Return on equity ...................................................................................................... 8 5.2 Net interest margin ................................................................................................... 9 5.3 Cost-to-income ratio ................................................................................................. 9 5.4 Net-performing loan ............................................................................................... 10 5.5 Capital adequacy ratio ........................................................................................... 11 6. ASEAN impact for member countries ........................................................................... 12 7. Conclusion ................................................................................................................... 13 8. References ................................................................................................................... 14 9. Appendices .................................................................................................................. 16
2 1. Introduction After the global financial crisis in 2007-2008, banks in Asia-Pacific have outperformed the global banking sector, and these banks will be getting more opportunities and keeping growing in this segment. ASEAN can help the member nations transfer funds more freely each other and increasingly interconnected, therefore, expanding and strengthening cross-trader trade. This report will focus on the three countries: Malaysia, Singapore and Thailand which would benefit from the financial integration in the ASEAN. 2. The financial integration impact for Malaysia, Singapore and Thailand (banking sector) Financial integration refers to a country’s financial connectedness with other countries. The economics of ASEAN have developed rapidly, and their financial services industries and the capital markets are growing strongly and accounting for a large proportion of GDP (Auster & Foo, 2015). Under the ASEAN banking integration framework, one country’s banks in the association can be able to set up operations to other ASEAN markets and getting the same treatment according to the bilateral agreements. Therefore, the funds will be transfer between different nations in ASEAN and promoting the trade. Liberalizing the banking industry in the region is strengthen regional economic and trade cooperation, meanwhile, promotes economic development of the member countries. However, different regulations and banking level in every member nation make it difficult for banking integration. The banking sector is an important part of the Singapore's financial markets; it is allowed foreign equity participation without the hard limits. Like Singapore, Malaysia will enable greater flexibility for the banking system to facilitate financing. For Thailand, many financial institutions have already announced that their operations would be expanded due to the increase in cross-border trades. For the conditions on foreign bank participation in Thailand, the banks must be locally incorporated and established as a limit public company and every foreign bank is allowed to establish one branch in Thailand (Dueñas, 2016).
3 3. Banking Performances in Singapore of OCBC in last 5 years

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture