According to a newsletter article by Adam Roseman of ARC China, it is definitely possible for China’s banking economy to exceed that of the U.S by 2023.
PricewaterhouseCoopers’s chief economist John Hawksworth has stated that current banking leaders should accept the shift in power and begin to prepare by acquiring shares of emerging markets’ unbanked populations.
“With populations of well over a billion each, access to markets like China and India is critical for growth,” he said.
Adam Roseman writes “Chinese banks already dominate global rankings by market value, and some lenders have already secured heavy emerging market exposure to tap into booming demand for financial products from young and increasingly wealthy populations.
“Banks in the fast-growing emerging markets (E7) of China, Brazil, Russia, Mexico, Indonesia and Turkey have been relatively shielded from the financial crisis that brought many western peers to their knees and sent asset values plunging.”
Hawksworth also noted “The E7 doesn’t need the G7 for capital, decision making or consumers, so the established economies will have to make a strong case to convince new economy policy makers of the benefit of inviting foreign competition in.”