Corporates are Expanding across Borders.Are Banks Following?

In an era of increased regulation, with stiff competition from other banks for business with blue-chip corporates and a lower appetite for risk, where can regional banks turn to for long-term sustainable growth?

On the corporate side, for an increasing number of domestic corporate leaders such as Lenovo from China or Airtel from India, impetus for growth is coming from cross-border mergers and acquisitions. In the Middle East and Asia, sovereign wealth funds such as Qatar Investment Authority and Temasek Holdings are flexing their cash rich wallets, and are aiding growth of corporates across borders. In a recent corporate survey by KPMG, over 30% of respondents were in favor of buying foreign assets in Africa, Middle East, and South America particularly in the energy, industry, consumer, and infrastructure markets.

As corporates expand across borders, transactions in a multi-country environment present opportunities and different challenges for regional banks. To become stronger regional champions, both banks and corporates are looking at the immense potential in trade and transaction banking across borders.

How can the banks support their customers to exploit potential in trade and transaction banking ?