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Business Exploitation And Strategy Study For Macau Commercial Banks

Posted on:2004-08-19Degree:MasterType:Thesis
Country:ChinaCandidate:Z M LiFull Text:PDF
GTID:2156360092991005Subject:Finance
Abstract/Summary:PDF Full Text Request
During recent years, the economy of Macau is sluggish. The major factor is the decrease in investment. In fact, loan demand for investment activities will also be diminishing when the development of a district is saturated. Albeit investment decreased, Macau citizens are people of wealth as reflected by their huge savings. It is merely the condition that a limited investment product has gotten on their nervous.In the past, banks used to concentrate on financing capital investment. Credit risks were not diversified. In the commodity market, supply is larger than demand recently. The condition has set aside a large portion of entrepreneurs' productivity and deteriorated their efficiency. Uncertainties have affected loan quality and as a result drawn bankers' prudent consideration in giving credits. As long as the loan portfolio contracts, banks cannot rely merely on interest income. In return of low growth in commercial lending, banks would not perform well in balance sheet management.In order to compensate the drop in interest income, banks are obliged to exploit products of wealth management and non-interest base businesses. Starting at retail of bonds, funds, deposit certificates and shares, more selling products will be sought from fund houses. Innovative products, which are in line with the market demand and under risk control, should be pushed forward. By virtue of new product exploitation, banks can avert risks, adjust loan portfolio and increase income. Therefore, the banks in Macau ought to take places in investment banking, off-shore banking and other banking businesses as their future development.
Keywords/Search Tags:Macau Commercial Bank, Investment Banking, Off-shore Banking, Small & Medium Enterprises Loan
PDF Full Text Request
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