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Emerging Markets DatafileFebruary 12, 2004
XINHUA
CHINA
ENGLISH
Transformation for banking, securities industries in 2004: Deloitte, XINHUA
ASIA
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HONG KONG, Feb. 12 (Xinhua) — Challenges confronting both the global banking and securities industries are escalating in the year of 2004, with new obstacles continuing to emerge. The Global Financial Services Industry of Deloitte, one of the world’s leading professional services firms, made the remarks in the new reports issued here Thursday.
According to Deloitte, banks are revising their strategies, focusing on revenue generation after years of cost-cutting measures in 2004 while securities firms are dealing with the fallout from corporate governance scandals, increasing globalization of securities markets and shifting customer expectations.
Deloitte listed the top ten banking issues for 2004 which are capturing the promise of the customer, leveraging human capital to increase profitability, offshoring to reduce costs while maintaining quality, Basel II Capital Accord urging banks to upgrade their credit and operational risk management processes, mastering the regulatory perfect storm, corporate governance, the challenge of fair value accounting, investing in new technology, building confidence goes beyond compliance and maintaining a strategic focus.
Maria Xuereb, Leader of the Banking Industry Group of Deloitte in Hong Kong, said capturing the promise of the customer and maintaining a strategic focus requires the institutions to fully consider and implement the opportunities presented by CEPA, the RMB banking business allowed in Hong Kong and the sharing of positive credit data.
Moreover, from a risk management perspective, the financial institutions need to continue their preparatory work for the implementation of the New Basel Accord, as well as address new threats, such as those posed by the suspected ATM fraud cases, she said. The top ten securities issues for 2004 outlined by Deloitte include fundamental changes alter the world’s securities markets, new thinking about customers, boosting returns from human capital, hedge funds, industry consolidation takes a different shape, offshoring, corporate governance becomes a higher priority, and protecting and enhancing corporate reputation.
Wade Deffenbaugh, partner of the securities practice at Deloitte, said, “Despite improving market conditions, trends for 2004 indicate many firms will need to reexamine their business models and adjust to a shifting marketplace to overcome the many challenges facing the securities industry,” he said.
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