Chinese banks’ mortgage loan growth dropped the most in 2017 and will continue to be affected by property cooling measures and relatively tight liquidity conditions. Hong Kong banks’ mortgage loan growth, on the other hand, increased, but they are not expected to maintain it due to tough operating conditions.

Economies of scale, profitability, and developing a comprehensive service proposition remain major challenges in Vietnam’s growing retail banking industry. A long-term sustainable future will depend on how banks execute a right risk-reward balance

DBS Group’s retail and wealth business has been accelerating income generation since 2013. However, the bank continues to face an uphill struggle with some of its overseas retail markets.

China Merchants Bank and China CITIC Bank are developing their credit card businesses to stimulate retail income.

The contribution of consumer finance to the overall retail loans in Asia Pacific in 2015 ranged from 2% to 56%. Its share to retail loans has increased in markets like Indonesia but has declined in Hong Kong and Thailand. The growth of consumer finance per country also varied, slowing down in Taiwan and growing faster in the Philippines.

Formal financial institutions have connected only 22% of the Indonesian population. A huge potential for the financial sector still needs to be explored, and digitised lending, which combines retail banking with financial technology, should be a future solution.

Hong Kong’s economy remains sound but the Hong Kong Monetary Authority is tamping down property loans and issuance of long-term personal loans. With the stricter regulations, the challenge for Hong Kong banks is not asset quality but pricing.

Despite considerable variations within the Middle East and Africa, the banking sector as a whole achieved good financial performance in 2014

From 2019 to 2023, the share of consumer finance relative to total retail lending declined in Hong Kong and South Korea, but increased significantly in the Philippines.