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However, a growing preference of China’s HNWI for closer wealth managers is fast narrowing the gap.

Gross NPAs climbed from 8.93% in September to 10.14% in March.

The sector bore $16.03b in bad loans as of end-March.

Stable savings and demand deposits buoyed healthy capitalisation levels.

Banks have been studying how to forge closer economic ties with the North.

Intense Western competition is adding to the banking sector’s growing list of woes.

However, the growing preference of Chinese wealthy for Hong Kong is challenging its dominance.

Moody’s notes that there are limits to how much banks can substitute for lower shadow credit levels.

The impact spares no market in either developed and emerging Asia.

MUFG Bank will cut the branch numbers by 20% whilst Mizuho will close around 100 domestic locations.

NPLs for the ‘Big Five’ largely fell whilst those for smaller rural commercial banks rose to 3%. As the country’s largest lenders enjoy enhanced profitability from lower bad loan levels brought about by a macro-economic recovery, smaller lenders have not emerged unscathed as they bear the brunt of defaults and rising interest rates.

The local market is expected to be worth $44b by 2020.

It will require data collection of RMB business activities and deposit rates to be rationalised.

Regional banks may lose about 60% of inheritance funds.

The ratio of the country’s banking sector to the Mainland also fell.

The collaboration will leverage on Infosys Finacle’s technology.