Global Banking practice combines industry knowledge, tax, regulatory and program management skills to deliver successful transformation programs.
The Banking practice combines industry knowledge, tax, and other skills.
Hong Kong is undoubtedly one of the key financial centres in the world. Some key statistics are testimony to this status: 73 of the world's 100 largest banks have a presence in Hong Kong; Hong Kong has one of the largest volumes of external transactions; Hong Kong is ranked as having the highest quality banking industry regulation in Asia.
KPMG has been serving this impressive community for many decades. We are auditors to almost a quarter of Hong Kong's banks which account for 59% of the SAR's banking assets.
We are in an excellent position to serve the China financial services industry which developed rapidly in recent years.
KPMG's banking and finance professionals are practical and highly experienced individuals, many of whom have had extensive experience in the industry prior to joining KPMG. This team has a strong track record of delivering clear and effective work plans.
In recent years, banks have been using mergers and acquisitions ("M&A") to gain market share rapidly, enhancing their portfolio mix. M&As can become very complex. They involve pitfalls that result in perceived values not being achieved in the long term.
How KPMG can help
For several years, KPMG globally has been ranked as a leading advice provider to the largest number of M&A transactions. In Hong Kong, we have a demonstrated track record in advising on:
- market entry; and
- business restructuring.
The Asian financial crisis caused a considerable shock to the financial sectors across the region. Many banks have seen the proportion of their non-performing loans increase rapidly to levels that at times were unprecedented globally. This has brought to the fore significant issues that require considerable long term attention from management. While much has been done in the last few years to restructure the corporate and financial sectors in many countries in the region, recent global economic downturn is likely to push back some of the progress that has been made. Also, new problems are expected to surface in the coming months.
How KPMG can help
KPMG's turnaround methodology enables lenders and borrowers to answer key questions about the borrower:
- What short term corrective action is required to solve immediate liquidity problems?
- What longer term strategy should be implemented to yield a substantial and sustainable competitive advantage?
- If a turnaround cannot be achieved, what are the alternative strategies available - do they include an orderly change of ownership or management rather than insolvency proceedings?
The turnaround methodology enables that the survival of the borrower is built on sound financial control and the focusing of the business only on those areas where the company can command a competitive advantage. KPMG also provides the core services of audit, tax and advisory.