The banking sector of the ‘E7’ - the emerging economies of China, India, Brazil, Russia, Indonesia, Mexico and Turkey is set to experience rapid growth over the next forty years and will be bigger than that of the G7 by 2050, according to a new report by PwC.
The firm found that the E7 banking sector is set to grow significantly faster than GDP in the ‘E7’ emerging economies.
Total profits from domestic banking in the E7 could be around half those in the G7 (US, Japan, Germany, UK, France, Italy and Canada) by 2025 and larger than in the G7 before 2050.
The new report: Banking in 2050: How big will the emerging markets get? examined the possible changes in the scale of the banking sector between now and 2050 and highlighted the pace of change, while providing some measure of the size of the opportunity and challenge for banks.
Nick Page, partner, PwC, said: ‘The E7 banking markets will become ever more important in the global banking sector and institutions that do not develop strong positions in these markets will find it difficult to maintain the same growth rates of assets and profits as those that do.’
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