American I-Banks Losing to Local Banks in Asia
American investment banks are losing to local banks in its ranking of top investment banks in Asia. Back in 2014, Goldman Sachs had ranked #1 in Asia, and now it didn't even make it to the top 10. Matter of fact, Goldman is planning on laying off 75 of 300 bankers that are employed in Asia.
'Wall Street has bet big on Asia for years, hoping to tap into the region’s fast-growing economies and the increasingly global ambitions of its companies. But tougher competition from local banks and a Chinese economic slowdown have eaten into profits, forcing some to pull back."
Another factor involved in the complexity of doing business in Asia:
"China and other emerging-market Asian economies are expensive places to do business. Language skills, relationships and knowledge of local regulations don’t transfer within Asia, meaning banks have to hire country specialists and can’t easily shift workers."
Other companies that have either exited Asia, or are making further cuts in job positions include Barclays PLC, UBS Group AG, and Bank of America Merrill Lynch.
Any thoughts on the future of American Investment banks in Asia?
