KUALA LUMPUR (Bernama) – The banking industry in 2015 is set to focus on moving past “short-termism” to focus on improving the fundamentals of their businesses in the resolute pursuit of profitability.
This is despite the new challenges and greater competition that they will face, says the 2015 Banking Outlook: Boosting Profitability Amidst New Challenges report, by the Deloitte Centre for Financial Services.
In a statement yesterday, Deloitte said banks need to improve their balance sheet management as it became more necessary and complex, while addressing the rising interest rate environment.
Deloitte Southeast Asia’s Financial Services Industry Leader Ho Kok Yong said banks need to manage their balance sheets against multiple and sometimes conflicting regulatory metrics simultaneously.
“This includes, their capital requirements, two liquidity ratios and a leverage ratio, on top of their bail-in-able and stress testing requirements.
“In the short-term, the challenge of this task is further compounded by the fact that some of these metrics have not yet been finalised,” he added.