Malaysia continues to lead in Islamic banking development
KUALA LUMPUR (Nov 19, 2012): Malaysia will continue to be the global leader in developing and promoting Islamic banking systems, according to Roland Berger Strategy Consultants.
Its senior partner for Southeast Asia, Markus Bohme said Malaysia will face competition from member countries of the Gulf Cooperation Council (GCC).
He said there will be an automatic connection with the GCC countries and at the same time competition, but Malaysia is probably set for that in Asia.
"Many people are thinking about Malaysia as a product of Islamic investment banking, automatically the activity will be related to the Gulf region.
"It probably goes beyond the Islamic...Malaysia has relatively strong banks and very international banks which are Maybank and CIMB," he told the media during an Investment Banking Outlook briefing, here today.
However, Bohme said the global investment banking revenues were set to increase this year but more restructuring and consolidation schemes were expected.
He said global investment banking revenues were expected to grow by 10% this year but might post a low double-digit industry return-on-equity (ROE).
"Global investment banks have improved their performances over the past few months, but structural earnings problems persist," he said.
Despite the rebound in revenues and profitability as compared with 2011, he said there would be more restructuring, consolidating and a continued shift into emerging markets, beyond just the traditional financial hubs in Asia.
"Thus, around 40,000 investment banking jobs are expected to be cut in the next two years -- compared with the middle of 2011," he said.