Investor pressure to clear lower-returning assets has seen Australian banks cut their lending to Asian economies by AUD$24.3 billion.
Led by ANZ’s move to sell off its 20 per cent stake in Shanghai Rural Commercial Bank earlier in the month, a pullback from investors has seen the exposure of Australian banks to key markets continue to slide.
BusinessDay analysis showed the Chinese, Singaporian, Hong Kong, Indonesia, Vietnamese and Indian markets had all seen close to 24 months of diminished involvement from Australian banks, while only markets in Japan and South Korea had experienced gains.
Statistics of the pare back of Australian banks from Bank for International Settlements, showed China and Singapore had suffered the most exposure loss, to values of approximately AUD$11 billion each.
Subsequent to the sell-off, ANZ deputy chief executive officer, Graham Hodges, said: “The sale reflects our strategy to simplify our business and improve capital efficiency.”
“The sale will also allow us to focus our resources on our institutional banking business.”
While Australia’s selling and export provisions have long been tied up with the growth of the Chinese economy, is slowdown could impact other boarding nations, including stakes in PT Bank Pan Indonesia and Malaysia’s AMMB Holdings Bhd.