South Korea Commercial Banking Report Q1 2008: Industry Report

South Korea Commercial Banking Report Q1 2008

Product Type: Market Research Report
Published by: Business Monitor International
Published: February 2008
Product Code: R302-1627

Description

Key Issues

From Q108 we will be calculating the Commercial Banking Business Environment Rating (CBBER) for each of the countries surveyed by BMI. This will permit a more systematic and comprehensive comparison of the conditions within the banking industries of the various countries than was possible in the past. For each country, it will also facilitate a comparison of the conditions within the banking sector and conditions prevailing in other sectors. South Korea’s overall CBBER is 72.0. The equivalent figures for the US and the eurozone are 84.8 and 81.4, respectively. South Korea’s CBBER is high by regional standards. In the Asia-Pacific Region, only Australia, Hong Kong, Japan and Singapore rank more highly. Within the CBBER, the most important aspect is the banking market element of the limits of potential returns. This element accounts for 42% of the overall rating. South Korea’s rating for this element - 73.1 - is higher than its overall CBBER and higher than the country element of the limits of potential returns - 70.8. Overall, the South Korean banking sector is relatively large in terms of total assets, and steady growth is expected into the future. More broadly, the South Korean economy expanded at a rate of 5.2% year-on-year (y-o-y) in Q307, prompting us to raise our full-year GDP growth for 2007 from 4.7% to 5.0%. South Korean exports have held up well due to strong demand from key markets like China and the EU. Moreover, rising investment and improving consumer sentiment have lifted the prospects for domestic demand going forward. We are expecting this momentum to be maintained in 2008 and have set our GDP projection at 5.1%. Inflation is, however, becoming a concern and we expect a further tightening of monetary policy.

Table of Contents

Executive Summary

Table: Levels Of Assets, Loans And Deposits (KRWbn)

Table: Levels Of Assets, Loans And Deposits (US$bn)

Table: Levels At December 31 2006

Table: Annual Growth Rate Projections, 2008-2012 (%)

Table: Ranking Out Of 59 Countries Reviewed In Q307

Table: Projected Levels (KRWbn)

Table: Projected Levels (US$mn)

Key Issues

Changes To The Commercial Banking Forecast

South Korea Commercial Banking SWOT

Commercial Banking Business Environment Ratings

Table: South Korea’s Commercial Banking Business Environment Ratings

Table: Asia Pacific Commercial Banking Business Environment Ratings

International Context

Lending Trends And External Accounts

Table: Comparison Of Lending Trends And External Accounts, End 2006

Table: Comparison Of Lending Trends And External Accounts

Total Assets, Client Loans And Client Deposits

Table: Comparison Of Total Assets, Client Loans And Client Deposits (US$bn)

Per-Capita Deposits

Table: Comparison Of Per-Capita Deposits, Late 2006 (US$)

Macroeconomic Trends And Developments

Table: South Korea - Economic Activity

Industry Forecast Scenario

Table: Annual Growth Rate Projections, 2008-2012 (%)

Table: Projected Levels (KRWbn)

Table: Projected Levels (US$mn)

Comment On Forecasts

Comment On Trends

Table: Comparison Of Loan/Deposit, Loan/Asset And Loan/GDP Ratios, End-2006

Banks’ Bond Portfolios

Table: Bond Portfolios, End-2006

Competitive Landscape

Market Protagonists

Methodology

Basis Of Projections

Commercial Bank Business Environment Rating

Table: Commercial Banking Business Environment Indicators And Rationale

Table: Weighting Of Indicators

Ordering and More Information

Price and Delivery Options

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