Markets such as Brazil and China may boast obvious attractions, yet so far international banks have notched few successes there.
In Brazil, only Spain’s Santander has a leading position, thanks to its opportunistic acquisition of the local business of ABN Amro just as the financial crisis set in. HSBC, by contrast is a second-tier player in Brazil. Like Santander’s Spanish rival BBVA – which despite a commanding presence across Latin America is absent from Brazil – the UK-run bank has been frustrated by an inability to grow by acquisition in a highly consolidated market.
Foreign incursions into China have been mired by a thicket of regulations and increasingly tough competition from local rivals. As a result outsiders’ market share was just 1.8 per cent last year.