Indian banking sector to be world’s third-biggest by 2050: PwC
07 Jun 2011
India's domestic banking sector is likely to become the third-largest in the world by 2050 after China and the US – leaving Japan, Germany and the UK behind, a survey by global accounting and consultancy firm PricewaterhouseCooper has said.
The report titled 'Banking in 2050' says China could overtake the US in terms of the size of its domestic banking sector around 2023.
In contrast, India's rate of banking growth is expected to overtake 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.
The combined domestic banking assets of the 'E7' emerging economies - China, India, Brazil, Russia, Mexico, Indonesia and Turkey - will exceed those in the wealthy G7 countries like the USA, Japan, Germany, the UK, France, Italy and Canada, sooner than predicted before the financial crisis, the survey said.
These emerging economies' banking sectors are expected to outgrow those of the developed economies by an even greater margin than PwC had originally projected before the financial crisis.
The study says that by 2050, E7 countries could have domestic banking assets and profits exceeding those of G7 countries by around 50 per cent.