Banking on sound strategies to overcome challenges (3)

Meanwhile, banks need to realise capital cost in product prices through upgrades in IT systems.

After all, the current bank-led financial system is closely associated to China's economic growth model in the past decade which used to rely heavily on exports and investment. During the process of economic transition and financial reform, both assets and liabilities of the banking sector will face stiff challenges and are superimposed against asset quality risk amidst the economic downturn.

Consequently, we see lots of uncertainties in the foreseeable future while China's large banks can still be formidable names in the sector if they take correct and necessary steps as soon as possible.

The author is an executive director at BOCI Securities. The opinions expressed here are entirely his own.

We recommend:
A Decade of Fastest Development	Eastern Boom Lightens Western Gloom	Chinese firms 'potential Trojan horses'? slows
AVIC unveils new aircraft engines	Oct. data released, inflation slows	13th Int'l Automobile Industry Exhibition
China Int'l Industry Fair opens in Shanghai	Caofeidian coal wharf put into use	Galaxy Soho building in Beijing