Foreign banks expect no favors in reshuffle

Foreign bankers are not counting on China’s leadership reshuffle to bring equality to the country’s banking sector, Reuters reported. Foreign banks need a lighter touch on bond writing, derivatives and funding channels if they are to grow in the market. Although medium-term reform was possible, short-term change was less likely, Christian Murk, president of the American Chamber of Commerce in China, said. “My outlook is basically optimistic, particularly in the medium term. The near term is always always uncertain.” Foreign banks around the world can only hope the Communist Party’s new standing committee, which is expected to be announced next week, to adopt a pro-reform stance that’s felt by frontline banking regulators, whose discression and licensing could allow whole new sources of wealth. Despite their best year in history with 115% growth to US$2.68 billion, foreign banks’ share of total banking assets in China remained less than 2%.