How banks can overcome the growing pressure of regulations and deteriorating margins

Asian banks should not only rely on trading gains, warns RCBC.

With the margin between borrowing money and lending out deteriorating and regulatory requirements like Basel III putting further pressure on banks, what alternatives are available to maintain a financially sound business? Could offering fee-based services like priority banking or wealth management be of help?

CIMB Bank: Renzo Viegas, Group Deputy Chief Executive Officer and Head of Consumer Banking
Undoubtedly, we are keen to grow our preferred customer base and our wealth management product book over the coming year as this will be benefit us in building our non-interest income revenue. There are, however, increasing opportunities to cross-sell our product offerings to our customers.

We have built up a commendable customer franchise over the last few years and efforts are underway to consolidate our attractive offerings. Growing the share of wallet is key and it is an important way to grow our revenue at relatively low cost and mitigate against the effects of margin compression.

RCBC: Ismael Sandig, Senior Executive Vice President - Retail Banking Group
Bottomline and / or profit are always the best cushion for every retail banking organization. It must come to a point where the bank must not rely on trading gains later on.