India is expected to rank third in terms of domestic banking by 2035,overtaking China and Japan,a PricewaterhouseCoopers report has said.
The report also said China could leapfrog the United States to become the world’s largest banking economy by 2023,the China Daily reports.
It also predicted that global banking assets could quadruple to around 300 trillion dollars by 2050,with the GDP of the E7 level pegging with the G7 nations of the United States,Japan,Germany,the UK,France,Italy and Canada within the next two decades.
“The E7 doesn’t need the G7 for capital,decision making or consumers,so the established economies will have to make a strong case to convince new economy policy makers of the benefits of inviting foreign competition in,” PwC’s chief economist John Hawksworth said.
The report also said E7 growth hinged on state investments in infrastructure,opening markets to fresh competition,reducing bureaucracy and budget deficits and increasing rural education.
Hawksworth urged current banking leaders to heed the accelerating shift in global economic power and claim a share of emerging markets” relatively unbanked populations.
PwC report was based on projections for GDP and domestic credit and used net interest margins as a measure of profit.