Foreign Banks in China Critical Success Factors and Lessons Learnt Our Mission  Understanding the business environment for foreign banks in China/Shanghai  Market strategy of Deutsche.

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Transcript Foreign Banks in China Critical Success Factors and Lessons Learnt Our Mission  Understanding the business environment for foreign banks in China/Shanghai  Market strategy of Deutsche.

Slide 1

Foreign Banks in China
Critical Success Factors and Lessons Learnt

Our Mission


Understanding the business environment for foreign
banks in China/Shanghai



Market strategy of Deutsche Bank



Market strategies of other foreign banks



Regulatory framework and impact on market entry



Masayoshi Odaka
Arati Varma
Prof. Ramin Cooper Maysami
Susann Naomi Israel
Gabriel Rüeck

Outlook for Shanghai vis-à-vis other Financial
Centres
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Slide 2

Foreign Banks in China
Critical Success Factors and Lessons Learnt

Meetings


Bank of America: Shawn Xue (Treasurer)



Bank of Communications: Dr. Zhou Kunping (Deputy Manager)



DBS Bank:

Choy Mun Loong (Senior Manager)

Sam Yang (Account Manager)
Chi Ho Ng (MBA Internship)


Deutsche Bank SGP:

Frank Hamer (General Manager)
Ned Perry (Head of Legal & Compliance Asia)



Dresdner Bank: Dr. Hans J. Schniewind (General Manager)



gic AHK DIHK: Holger Morneweg (Representative)
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Slide 3

Foreign Banks in China
Critical Success Factors and Lessons Learnt

Our Conclusions:
Banking Business in Shanghai


Limited scope for foreign banks



Legal framework is still “immature”



Relationships play an important role



Primary reliance on servicing foreign companies



No short-term profits



Qualified and motivated staff at affordable costs



Risk management still to be improved



E-banking is growing and important
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Slide 4

Foreign Banks in China
Critical Success Factors and Lessons Learnt

Our Conclusions:
Market Entry Strategies of Foreign Banks


Foreign enterprises are the initial customer base



Strategy matches strengths, no uniform strategy among
banks



RMB license is important (competitive advantage)



Partnership, alliance and shareholding questionable



Early market entry is important



Premium products at a premium price



Focus on niche markets
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Slide 5

Foreign Banks in China
Critical Success Factors and Lessons Learnt

Our Conclusions:
Regulations


Regulation changes are unpredictable and frequent



Access to rules difficult



Little transparency



High costs for licensing products



Exchange rate control and interest control limit
business



Not yet up to Singapore or Hong Kong standards

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