ratsharp

Goldman Sachs: Indian/Chinese Institutions Could Buy American Banks

anshu couple of points..
1. indian banks too dont like competition on home front...license to open branches are limited in india too.
2. the cost structure arbitrage in banking is a myth beyond what jp morgan's done in its retail business ... IB/capital markets cannot be handled frm india
3. branch banking in india ..is like branch banking in us.. the big banks realize that all of it cant be online..and so their cost structure is already lower... getting indian institutions cant reduce costs ...unless of course oracle offers discounted prices to indian/chinese banks..
4. the purchase of american institutions by indian/chinese is based on the premise that the latter will get cheaper/efficient assets in US compared to their own country ..and possibly rreplicate some of the setup in their own less efficient environment...
5. people dont do serious banking with cheap costs ( coz costs with larger us banks is low based on the services they provide in a country which is multiple times the size/scope of india/china ( in terms of urban areas) ...similar to telecom. The high end banking is about trust ... can never be inspired by countries which have possibility of nationalization etc.

more later...