By IANS,
Mumbai: The Indian domestic banking industry will become the third largest in the world by 2050 after China and the US, according to a survey released by global audit and consulting firm PwC.
“China and India could have a combined share of around 35 percent of global banking assets by 2050. The US, Japan and Western Europe are all projected to see large falls in their share of global banking assets in the coming decades,” said Harsh Bisht, leader – banking and capital markets, PwC India.
The survey also said that India’s rate of growth was expected to overtake that of China’s in the long run as it has more catch-up potential and its working age population growth will be much stronger in the long-term.
Also, the combined domestic banking assets of seven of the prime emerging economies of the world — China, India, Brazil, Russia, Mexico, Indonesia and Turkey will exceed the group of G7 countries.
The G7 developed economies of the world are France, Germany, Italy, Japan, Britain, the United States and Canada.
“The GDP of the E7 countries is currently well behind that of their G7 counterparts but we’ll see them at level pegging within the next two decades and well ahead within the next four,” said John Hawksworth, chief economist, PwC.
The survey said that global banking assets could quadruple to around $300 trillion by 2050.
“In the banking world, this shift is happening even faster than anticipated and appears to have been accelerated by the financial crisis as emerging market banks have been relatively shielded from the effects of declining asset values” added Hawksworth.