Banking and Capital Markets
The Banking and Capital Markets Sector in China, as in the rest of the world, faces the split challenges of balancing growth and risk with that of a continually developing and increasingly demanding market environment. New entrants, emerging technology, increasingly complex regulation and progression toward a more flexible approach to interest rates and currency policy setting place an unforeseen level of stress on all market participants.
In the face of this, our clients require carefully crafted business strategies and both practical and technical solutions to survive, yet alone excel, in both the domestic and international marketplace of banking and capital markets.
City and rural commercial banks are an essential component of the Chinese banking industry. The competitive market dynamics and higher regulatory expectations have driven the banks to embark on innovation and transformation to achieve higher efficacy and stand out in the market. Please contact Karen Wu for more about how Deloitte can assist in the development journey of the Chinese regional financial institutions.
As one of the recognized leaders in providing professional services, Deloitte professionals are working with our banking and capital markets clients to develop and implement such strategies and solutions – we provide customized services drawn from our vast array of audit and assurance, taxation, risk compliance, regulatory and business transformation services. We focus our efforts at helping our clients combine the power of their people, their technology and their processes to lead in their markets. Our clients include state-owned banks, policy banks, joint equity banks, city and rural commercial banks as well as foreign banks operating in the Mainland and Hong Kong/Macau SAR. In addition we audit and advise a vast range of multi-national and domestic finance companies, leasing companies, securities firms and investment banks.
Supported by the Deloitte Global FSI network with a strong local presence deeply rooted in China, our subject matter specialists in the banking and capital markets teams bring with them industry experience and knowledge as well as functional expertise and competence to help address the complexity that today's financial institutions face.
- Forging ahead together for a better future: Chinese banking sector 2021 review and 2022 outlook
This Chinese banking sector 2021 review and 2022 outlook is the 14th in a series of analytical reports. In this edition, the Deloitte China FSI research team reviews 2021 economic and financial development, analyzes the performance and business operation of Chinese listed banks in 2021, and covers a host of hot topics.
- Banking as a Service, Explained: What it is, Why it’s Important and How to Play Banking as a Service
(BaaS) is reconfiguring the banking value chain, opening the door to disintermediation and enabling new sources of growth. Our latest report, "Banking as a Service, Explained," can help you understand what BaaS is, why it’s important, and how to play.
- Last mile of the customer service experience：The next battleground in retail banking
In this report, we will examine some of the design choices made by recent digital bank entrants, reflect on eight of the key lessons that can be drawn from their experience, and discuss three no-regret decisions that banks can make today to enable them to succeed in the next normal.
- Embrace the new era with ramped up efforts in quality development: Chinese banking sector 2020 review and 2021 outlook
In this edition, we took eight domestic commercial banks as examples while using six foreign systematically important banks as benchmarks, systematically studied the profitability, assets, liabilities, and capital strength of the listed banks in China, revealed some of their remarkable achievements in 2020, and identified areas of improvement in the future.
- Regional Banking Technology and Cloud Adoption
These days, regional banks are playing from behind—at least when it comes to their IT infrastructure. One key area that constrains them is cloud and technology infrastructure. How can regional banking institutions evolve their technology to compete with industry heavyweights?
- The Future of Retail Banking
The US retail banking sector has been transforming at a fast pace, like the rest of consumer financial services. And the COVID-19 crisis has only accelerated consumer shifts toward digital. With a depressed macro environment, banks have little choice but to embrace digital transformation. Explore 10 key shifts transforming the future of retail banking.
- China Banking Industry Semi-annual Analysis of 2020—Move forward with Fortitude
The report covering China's economic and financial situations over the first half of 2020, as well as the interim results overview, financial data analysis, and business observations of Chinese listed banks. The report has conducted a comparative analysis on the business development, operation model, and response to regulatory changes of large state-owned commercial banks, 6 representative joint-stock banks, and 6 overseas global systemically important banks.
- Retail banking in the age of COVID-19
With the COVID-19 pandemic the banking industry is in uncharted waters and leaders need to take decisive actions to ensure their organizations remain resilient. In this report, we provide global banking leaders with potential medium-term implications of COVID-19 for the retail banking sector.
- Business Agility in Retail Banking: Build up your agility
The report looks at how agility can help banks better manage disruption and customer expectations through continuous change and employee empowerment.
- Forging Ahead to the Next Chapter: Review and Outlook on China Banking Industry 2019-2020
Deloitte China recently published the Forging Ahead to the Next Chapter: Review and Outlook on China Banking Industry 2019-2020. The report covers China's economic and financial overview, financial data analysis of listed banks, the industry hot topics of 2019, as well as outlooks on economic and banking development in 2020. By analyzing the 2019 financial performance of 6 large Chinese listed banks and compared with large global banks, sorting out and examining their business development, business models and regulatory environment changes, the report aims to look ahead to the future development of China's banking industry.
- Save-to-transform as a catalyst for embracing digital disruption
This report provides an up-to-date view of the cost management practices and trends shaping the future of banking and global business. It also takes a detailed look at how the latest digital technologies and cost management strategies are acting as a catalyst for transformation in a world being actively redefined by digital disruption.
- 2020 Asia Pacific Regulatory Outlook
In this report, we explore how Asia Pacific regulators will focus on these aspects of financial institutions’ social licence to operate in the coming year. We look at how this will impact firms’ internal operations, how they harness technology, how they engage with their customers and society as a whole, and what firms need to do to meet these challenges.
- 2020 banking and capital markets outlook
Disruptive forces are changing how banking is done. Banks can add customer value by fortifying their foundation and staying true to their core identity as financial intermediaries, matching demand with supply of capital.
- The cloud imperative：How banks can improve business agility through cloud-powered transformation
It’s clear that banking’s future is in cloud. Financial institutions have spent far too much time and money running ever-larger data centres and maintaining large, unwieldy legacy systems—technology that has constrained banks’ ability to change and adapt. Cloud provides a way forward, a way for banks to break free from the constraints of old technology, increase their business agility, and get back to the business of banking. The investments required to harness cloud’s potential are significant, as are the implications for talent strategies and ways of working. But investing in cloud is fundamental to ensuring your organization can compete in the years to come.
- The next generation of data-sharing in financial services: Using privacy enhancing techniques to unlock new value
The value of data is often greater than the sum of its parts. In the financial services sector specifically, the use of data allows financial institutions to offer greater value and personalized services to clients and address business challenges such as fraud. However, the use of data raises privacy and security concerns from customers, institutions, and regulators— these competing obligations have historically prevented them from unlocking the full value of their data.
- Digital transformation hits core banking：The future of digital banking strategy
As banks move to digitize their core banking platform, they need to consider how quickly they want to bring about change and understand the implications of their modernization journey. Our report explores five options for banks to consider as they implement their core banking transformations.
- Pursuing cybersecurity maturity at financial institutions: Survey spotlights key traits among more advanced risk managers
Financial firms are stepping up their efforts to stay ahead of cyber and business threats. The latest Deloitte and FS-ISAC survey reveals what differentiates the strongest cybersecurity programs from the rest.
- Review and Outlook of China Banking Industry Semi-annual Analysis Of 2019
Deloitte's China Banking Industry Semi-annual Analysis 2019 (Chinese only), explores China's #economic and financial conditions and analyzes the performance of A-share and H-share listed Chinese banks in 1H2019.
- Optimizing global treasury: Managing banks’ liquidity and funding risk
This report highlights the key regulatory developments that are impacting the treasury function and provides insight into the challenges that peer institutions are facing and how they are responding.
- Banks on the move: Establishing FinTech enabled Private Banks and Wealth Managers in China
In line with China's economic progress over the past decades, both the public and private sectors have accumulated an increasing amount of wealth – to such an extent that we believe it has become the second largest wealth management market in Asia Pacific. In this paper, we explored key considerations when establishing FinTech enabled private banks and wealth managers in China.
- Interim Regulatory Outlook 2019
The Deloitte EMEA Financial Services Regulatory Outlook set out our view of the FS regulatory world as we entered 2019. Six months on, this update evaluates the key themes that have emerged and looks forward at what’s to come in the remainder of the year. It provides updates on all the cross-sector themes and supervisory constants, as well as commentary on the major developments across the banking, insurance, capital markets and investment management sectors.
- Findings from the global consumer survey on digital banking, and analysis on the value of bank branches and online banking channels
Key takeaway from the survey is the banks will need to accelerate their digital transformation and reconfigure each channel to serve every need customers have. Only this level of transformation is likely to strengthen banks' emotional ties with consumers and earn them a top spot in the list of consumer's favourite brands. Meanwhile, we urge banks to fully recognize the value branches offer and keep customer preferences on top of mind when repositioning branches.
- Review and Outlook of China Banking Industry 2018
The report covers China's economic and financial overview, analyses the latest results of Chinese A-share and/or H-share listed banks in 2018, and provides an outlook of the Chinese banking sector for 2019.
- Research Report on the Corporate Governance Practices of China’s Six Largest Commercial Banks 2019
The Report reviewed and summarized the achievements of China’s six largest commercial banks in corporate governance. Came up with a relatively objective research conclusion based on the analysis from six aspects. Proposed some suggestions to improve corporate governance and provided reference for the parties involved in corporate governance including regulatory authorities, shareholders and directors.
- Asia-Pacific Financial Services Regulatory Outlook 2019
This report explores nine themes that the Deloitte Centre for Regulatory Strategy expects to dominate the financial services regulatory agenda in the region over the coming year. Whilst the significance of each of these nine themes will vary across different jurisdictions, industry sectors and institutions, we consider all areas identified to be relevant to financial services firms operating in Asia Pacific to some degree.
- Financial Markets Regulatory Outlook 2019
The 2019 edition covers a mixture of cross-sector and sector-specific issues of strategic significance for financial services firms, from the challenges of Brexit and the increasing importance of climate change, through to LIBOR reform, cyber security developments, and much more.
- 2019 Banking Industry Outlook: Optimism for banking and capital markets
There’s a new kind of promise in the banking industry—and possibly no better time than now for transformation. Economic fundamentals are strong, the regulatory climate is favorable, and transformation technologies are more readily accessible, powerful, and economical than ever before.
- Inclusion Through Distribution: How Blockchain Supports Financial Inclusion
This white paper by Deloitte China explores the future of financial inclusion, which could be underpinned by the application of Blockchain for conventionally unbanked population and more.
- Banks on the move - Midwestern China the regional service delivery location of the future?
This white paper is a response to China’s Financial Services opening-up policy and the associated strategic considerations of banking players willing to increase their footprint in Mainland China.
- The Regulatory Landscape in Asia-Pacific: Three recurring themes in 2018
Deloitte has observed three recurring themes in the regulatory space of financial services industry: conduct, innovation, and data.
- Listed Chinese Banks Interim Results Analysis for 2018
The report outlines China's economic and financial developments and the performance of Chinese A-share or H-share listed banks.
- Double your intelligence: Using intelligent automation to double productivity in Finance
Intelligent automation presents opportunities for Finance functions within financial services institutions to deliver information and value to the business more quickly, more accurately and at the lower cost.
- Opportunities and challenges to foreign institutions as Chinese financial industry opens further
Deloitte believes that financial institutions in China need to solve two key issues to secure success amid the increasingly fierce competition: effective compliance to enter the market and the right strategy for local market.
- Trends in trade finance regulation / Dealing better with anti-money-laundering
There are three new methods to more efficiently deal with all the new regulations on money laundering, terrorist financing and sanctions and Ivan Zasarsky, partner at Deloitte's Asia Pacific Financial Crime Strategy & Response Centre outlines further details in the feature article in the International Chamber of Commerce publication.
- Listed Chinese Banks Results Analysis for 2017
This report covers China's economic and financial overview, analyses the latest results of Chinese A-share and/or H-share listed banks in 2017, and provides an outlook of the Chinese banking sector for 2018.
- 2018 banking and securities M&A outlook: Navigating trends in bank mergers and acquisitions
This report examines banking M&A trends and expectations across banking, specialty finance, investment management and securities, and fintech.
- Facing the future: an evolving landscape - Financial Services Regulatory Outlook 2018
With the finalisation of Basel III, the regulatory agenda in Asia Pacific will now become firmly focused on the future. This paper sets out the top ten regulatory themes that the Deloitte Centre for Regulatory Strategy expects to dominate the financial services regulatory agenda in the region over the coming year.
- Global bank governance in a structurally reformed world: Too complex to manage?
This report from our Centre for Regulatory Strategy sets out the new reality for governing global banking groups in the context of structural reform and makes recommendations for where global banks should focus their energies in trying to tackle the challenges they face.
- Beyond Fintech: A pragmatic assessment of disruptive potential in financial services
The World Economic Forum and Deloitte Global’s latest report studies the transformative role of fintech and other disruptive forces on the financial services industry. The report studies the impact of this disruption on the industry as a whole, as well as on seven sectors including payments, digital banking, lending, insurance, market infrastructure, investment management, and equity crowdfunding. Fintechs have defined the direction, shape, and pace of change across almost every financial services subsector. While they may not dominate the industry today, they have laid the foundation for future disruption.
- Beyond Fintech: Disruptive innovation in payments
Payments are migrating away from cash as consumers shift purchases to online and mobile channels. On one hand, heightened competition and a challenging regulatory environment are leading to steadily declining profits. On the other, customers are reluctant to switch to nontraditional payment schemes without seeing significant benefits, thereby limiting adoption of new technologies. What implications will these trends have on payment businesses?
- Beyond Fintech: Disruptive innovation in digital banking
Banking is on the cusp of significant disruption as regulations and technology begin to lay the foundation for a fundamental shift in the business model. Additionally, customers are expecting more value‐driven, personalized, and seamless service than ever before. How will this impact the digital banking landscape?
- Beyond Fintech: Disruptive innovation in lending
Lending has greatly evolved over the last several years with fintech playing a significant role in restructuring the lending landscape to be more dynamic and responsive. Fintechs are providing customers with pain-free lending services, and customers want the same unified experience with their banks. Additionally, consumers can choose from a host of financial and non‐financial providers. But, fintechs are struggling to find a sustainable business model in the face of funding instability.
- Beyond Fintech: Disruptive innovation in market infrastructure
Infrastructure underlying capital markets is rapidly changing with the global entry of several innovative forces that have the potential to change how transactions are being conducted. Traditional over-the-counter products are becoming electronic, but are not scaling due to fragmented regulatory and technological environments. In order to scale up and garner success, joint ventures and partnerships between fintechs and incumbents are key.
- Beyond Fintech: Disruptive innovation in equity crowdfunding
Equity crowdfunding has greatly evolved over the last several years. Crowdfunding platforms have grown rapidly with the demand from an increasing number of start-ups and private market investors seeking alternatives to venture capital. How will regulation converge to support this growth?
- 2018 Banking Industry Outlook: Six themes driving banking industry trends
For 2018 and beyond, banks must contend with multiple challenges tied to regulations, legacy systems, disruptive models and technologies, new competitors, and a restive customer base while pursuing new strategies for sustainable growth. Deloitte’s 2018 Banking Industry Outlook examines the six macro themes facing each of the industry’s five primary business segments in the coming 12-to-18 months. Firms that can address these emerging challenges and opportunities to effectively balance long-term goals with short-term performance pressures could be amply rewarded.
- Newsletter Issue 2, 2017 - Targeted RRR reduction to promote inclusive finance
Early evening on 30 September 2017, prior to the Chinese National Day, the People’s Bank of China (PBOC) announced to reduce the Reserve Requirement Ratio (RRR) targeted for the inclusive finance area starting from 2018.
- Newsletter Issue 1, 2017 - Comment on deleveraging China
China is trying to slow its credit scale and growth by deleveraging, with a focus on the high leverage of SOEs in industries with excess production capacity. To support this, the PBOC, China's Central Bank, has implemented the "half tightened policy" to adjust the monetary markets, creating funding cost increases whilst still keeping financial liquidity stable.
- The future of risk in Financial Services
This report urges financial institutions to rethink and transform the way they manage risk to leverage emergent technologies, and increase risk management productivity and effectiveness.
- Managing conduct risk: Addressing drivers, restoring trust
This paper identifies the fundamental drivers of misconduct in the financial services industry, with a view of helping firms drive sustainable solutions to improve conduct and restore trust.
- Listed Chinese Banks Interim Results Analysis for 2017
This report outlines the recent economic and financial developments that are impacting the Chinese banking sector and provides an analysis on the latest interim results of Chinese A-share or H-share listed banks in 2017.
- Intelligence and Fintech: Corporate banking credit business transformation under ‘new normal economy’ in China banking industry
This report analyzes major challenges to banking corporate credit business, indicates the focus of operation management, defines areas for improvement and provides solutions and countermeasures based on rich consulting and implementation experience of Deloitte China FSI management consulting team.
- Listed Chinese Banks Results Analysis for 2016
The report provides an overview of hot industry topics, as well as an outlook for the domestic economy and banking industry for the year ahead.
- Navigating the year ahead: Financial services regulatory outlook 2017
This paper sets out the major regulatory themes that the Deloitte Centre for Regulatory Strategy expects to dominate the regulatory agenda for Asia Pacific financial institutions over the coming year.
- The First Half of 2016 Listed Banks Result Analysis
Based on analysis of key players' performance in the first half year of 2016, our latest banking study provides insights into the overall development of Chinese banking industry.
- Picture perfect: A blueprint for digital identity
Lack of a strong, universal digital identity solution limits innovation and delivery of efficient, secure, digital-based Fintech offerings. Financial services institutions should drive the development of such a solution.
- Over the horizon: Blockchain and the future of financial infrastructure
When the industry can be fuelled by distributed ledger technology what does the future of financial services infrastructure look like?
- Wealth Management and Private Banking
Deloitte and Efma are delighted to present to you the results of the second edition of the wealth management and private banking survey. This white paper from Deloitte Luxembourg addresses challenges and opportunities that are specific to today’s wealth management and private banking cross-border activities.
- Tackling too-big-to fail, the resolvability challenge for banks
Making banks resolvable is a key part of the global response to tackle institutions deemed ‘too-big-to-fail’.
- Tackling too-big-to-fail
This paper sets out our view on what “good” looks like for banks trying to achieve resolvability, identifying six ‘resolvability drivers’ that they must address to meet resolution authorities’ expectations.
- Management information on culture
This paper, launched in partnership between Deloitte’s three regulatory strategy centres, sets out eight principles for collecting meaningful management information on culture that will allow Boards and senior management to understand if their “tone from the top” is reflected in a strong and consistent “echo from the bottom”.
- The 2015 listed banks' results analysis
Our report analyzes the Chinese listed banks' 2015 results and MD&A, and examines the market trends and challenges facing the domestic banking industry.
- Fifth Global IFRS Banking Survey: Finding your way
This fifth edition of the Global IFRS Banking Survey focuses on the expected credit loss implementation challenges that banks will have to face and seeks to provide clients, regulators and the wider market with insights into current thinking across the sector.
- Cleared for takeoff: Five megatrends that will change financial services
This report identifies the clusters of innovation that are affecting business in five areas of the financial services industry: Primary accounts, payments, capital markets, investment management and insurance.
- The first half of 2015 listed banks result analysis
The paper analyzes their results and management discussions and explores the key challenges faced by the Chinese banking industry.
- Global bank booking models: Making a success of structural reform
This report, launched in partnership between Deloitte’s three regulatory strategy centers – EMEA, US, and APAC – critically assesses booking models in the new regulatory and supervisory environment.
- Regulatory reform
This paper, from the Deloitte Asia Pacific Centre for Regulatory Strategy, sets out the key elements of the financial services international reform agenda and the application of these in the Asia Pacific region.
- 2014 Listed banks result analysis
As the listed banks announced their performance in 2014, together with management's discussion and analysis, GFSI team issued the report focus on certain key challenges faced by the Chinese banking industry.
- 2015 Trends for China financial services industry
Financial institutions in China will no doubt face more challenges in 2015 and yet they will have more opportunities to grow. The Financial Service team of Deloitte China has always been dedicated to study development and changes of this industry, and this report was written based on our views for the likely trends in 2015.
- Where should branches go under Bank 3.0? Five branch channel transformation trends in China banking industry (In Simplified Chinese only)
Radical changes driven by technology, customer requirements, customer structure and internet finance have led to huge and unprecedented impacts on the traditional banking industry. Facing challenges as well as opportunities, banks need to take instant action against the threat of non-financial competitors with multiple-channel strategy, as well as competition within the industry in Bank 3.0.
- The establishment of internal rating system for small and medium-sized banks
We discussed challenges and proposed solutions from night aspects in the whitepaper to help small and medium-sized banks establish standard internal rating and IT system and realize application, finally achieving the strategic transformation required by Basel New Capital Accord.
- 2014 Listed banks result analysis
As the listed banks announced their performance in 2014, together with management's discussion and analysis, GFSI team issued the report stating certain key challenges faced by the Chinese banking industry.
- Direct Banking - Exploration of commercial bank transformation and development under internet finance era
Commercial banks are facing a more challenging macroeconomic condition: intensified credit risk, finance disintermediation, interest rate liberalization; and emergence of internet finance are weakening the traditional commercial banks competitiveness. In times of new normal economic condition and digitalization, strategic transformation has been extremely important for incumbents.
- Review on interim reports of China's listed banks
The report summaries the overall development of Chinese banking industry in the first half year of 2014 and provides data analysis on the key players' performance.
- Banking disrupted: How technology is threatening the traditional European retail banking model
The ideas and viewpoints from this report provide valuable references for domestic banks to develop retail banking business in China.
- Top 10 trends and prospects of the Chinese Banking Industry 2014
Learn about the top issues that are likely to have a major impact on the banking industry in China in the coming years.
- International expansion opportunities for emerging markets-based banks
This report discusses the trends influencing international expansion of emerging market-based banks, including world trade flow, growing GDP and fast growing companies.
- Branch Transformation 3.0: Construction of regional retail banking's core competence
This report analyzes the challenges facing branches and presents insights for branch transformation for regional banks.