Indeed, outside of the financial hubs of Singapore and Hong Kong, domestic banks control most Asian corporate banking revenues. Those regional and global players that have invested significantly in their Asian branch networks still find it difficult to compete with the incumbents,especially when it comes to providing local balance-sheet support at competitive rates or offering transaction banking services. Even in the most developed economies, Australia and Japan, local institutions control over 90 percent of corporate deposits and 80 percent of corporate loans
While the recent McKinsey survey of over 100 large Asian corporations about their banking needs showed that two-thirds of global MNCs would prefer to use full-service banks wherever possible, in practice they usually still rely on local banks for domestic payment and collection services, particularly in emerging Asian markets such as China, India and Vietnam.