market reporting in asia's financial sector: bridging the gap

Financial Servicesforwardprintquit

Executive summary

Introduction

How does Asia compare?

Easy – for now

Commitment, culture and technology

The analyst’s view

Looking to the future

Appendix: Survey results

Contacts

PricewaterhouseCoopers Global Financial Services Briefing Programme

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Market reporting in Asia’s financial sector: Bridging the gap between perception and reality*

forwardbackMarket reporting in Asia’s financial sector: Bridging the gap between perception and reality

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�

Welcome to the second Asia specific financial services briefing entitled

Market reporting in Asia’s financial sector: Bridging the gap between perception and reality.

This briefing, written in co-operation with the Economist Intelligence Unit

(EIU), looks at how financial services organisations in Asia approach the

enhanced demands of market reporting and explores whether stakeholder

expectations are being met. Are international best practices for reporting

standards being employed and how long will it take for the region to reach

the same stage as their international counterparts?

The research effort for this briefing comprises of two initiatives:

The Economist Intelligence Unit held over 15 one-to-one interviews with

senior executives and analysts at financial services institutions in Asia.

The Economist Intelligence Unit and PricewaterhouseCoopers1 conducted

a special on-line survey of senior executives in financial services

institutions on the subject of market reporting. Over 1�3 executives

in financial institutions in Asia participated in the survey, which was

conducted during August and September �006.

The interviews and survey findings were further supplemented by

significant desk research.

•

•

I am confident that you will find this briefing thought provoking and

insightful. This Asia specific briefing is part of our global Financial

Services Briefing Programme and soft copies of this, along with our

previous global and Asia briefings on Wealth Management, Economic Capital, Risk Management, The Trust Challenge, IFRS, Compliance, Restructuring, Governance, Performance Improvement, Growth, Offshoring and Customer-centric Growth are all available free of charge

from our web site www.pwc.com/financialservices

If you would like to discuss any of the issues addressed in more detail,

please speak with your usual contact at PricewaterhouseCoopers or one of

the editorial board members listed at the end of this briefing. We would also

appreciate your feedback on this briefing as it helps us to ensure that we

are addressing the issues that you are focusing on.

Dominic Nixon

Financial Services Leader, Asia

Executive summary


1 In this ‘Global Financial Services Briefing Programme’ publication, the term ‘PricewaterhouseCoopers’ is used to refer to the global network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independence legal entity.

www.pwc.com/financialservices


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Executive summary continued

Globalisation of standards, increasing cross-border M&A and tightening local regulations are all driving Asia’s financial services sector to move toward international standards of market reporting (the reporting of financial and non-financial information to stakeholders). Developments such as Pillar 3 of Basel II and International Financial Reporting Standards (IFRS) are helping to drive this step forward.

But are Asia’s financial services firms meeting the

expectations of analysts and other stakeholders?

According to a survey of Asian financial services

firms conducted for PricewaterhouseCoopers by

the Economist Intelligence Unit in August-

September �006, they are generally confident

that they are meeting demands – overall, 63%

feel their market reporting is very effective. But

how high are the demands? Our research suggests

that many financial services firms in the region

benchmark their reporting against domestic

peers, rather than overseas players. And equity

analysts judge Asian firms against the standards

of the Asian markets they cover, rather than New

York or London. In some markets, analysts do

not use all of the information disclosed by

companies; in others, they ‘are used to doing

more with less’, comments Addison Everett,

Partner with PricewaterhouseCoopers in Beijing.

It is perhaps no surprise that respondents from

financial services firms in Asia’s more developed

markets (defined here as Australia, Hong Kong,

Japan, New Zealand and Singapore) believe

that the region as a whole is further away from

reaching international best practice than their

counterparts in Asia’s emerging markets (China,

India, Indonesia, Malaysia, Pakistan, Taiwan,

Thailand and South Korea). By definition, firms

in developed markets are more aware of

international standards, having been exposed

to global markets for longer. They have also

expended more effort in trying to reach such

standards and thus have a more realistic view

of what’s involved. A significant proportion (41%)

of respondents in developed markets say that

market reporting in Asia will not be on a par with

international best practice until �015 or later, while

40% say they will be on par by �010. (As noted

in the main report which follows, international

best practice is itself a moving target.)

By contrast, among respondents in emerging

markets, 59% are confident they will reach

international standards by �010, while 38% feel

that this milestone will not be reached until �015

or later. This suggests that respondents in

emerging markets are underestimating the gap

between themselves and their peers in more

developed markets. It also creates interesting

challenges, since financial services firms in

emerging markets are more likely to be seeking

new or increased funding from shareholders and

bondholders as they expand.

Another reason to believe that international

standards are further away is experience

elsewhere. Surveys of the �005 annual reports


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of banks and insurance companies1 conducted

by PricewaterhouseCoopers found that the

implementation of IFRS has proved to be a

real challenge.

Respondents to this survey can see some of

the obstacles that must be overcome to meet

international standards. In developed markets,

increasing volumes of transactions, cost

pressures and a lack of skilled personnel are

deemed the biggest challenges in the provision

of market reporting information. In emerging

markets, where labour costs are lower, financial

services firms struggle in different areas, and are

often challenged by a lack of procedures to

aggregate/produce information, as well as data

quality issues.

Yet financial services firms believe that regulatory

pressures will require them to continue to

increase their levels of disclosure, 55% of our

survey respondents believe that regulatory

pressure for greater disclosure will increase

substantially over the next three years.

To respond to these challenges, financial

services firms in Asia must focus on the

following areas:

Senior management commitment. It is critical

for senior managers to overcome their customary

distrust of disclosure, and promote effective

market reporting. More than half of our survey

respondents cite greater management

commitment as being vital in driving

improvements in market reporting. This is

particularly true in emerging markets, where

middle managers accounted for a greater

proportion of survey respondents. The greater

share of C-level executives among survey

respondents in developed markets suggests

a greater involvement in market reporting by

senior management in those markets.

Culture. Senior management commitment is

essential for promoting a culture of disclosure

and an increased awareness across the company

– from credit to IT and finance. Karen Loon,

a partner with PricewaterhouseCoopers in

Singapore, remarks that ‘Different departments

are frequently using the same data and facing

many of the same issues but may not be aware of

this’. Fostering a culture of openness within the

organisation and embedding processes are both

necessary to meet the demands for the collection

and analysis of increasingly complex information.

Of the respondents to our survey, 57% said that

better processes were required to improve market

reporting at their firm. In addition to investment

in IT systems, companies must place equal

importance on processes that support them.

And processes must be continually improved

in order to reduce costs, cope with increasing

volumes and minimise operational risk.

Technology. Data collation and compatibility

cause headaches in all markets but problems are

even more severe in Asia, where many markets

are still developing and there are few established

indicators. In fast-growing economies such as

China, financial services firms can only imagine

what their customer base will look like in ten

years. Of our survey respondents, 57% said

improvement in this area would require better IT

systems. Financial services firms need a long-

term IT vision that takes into account likely future

regulatory, demographic and economic changes,

not a ‘sticky tape solution’. This vision should

also take into account the interlinking data

requirements of Basel II, IFRS and other

reporting requirements.

In order to succeed in improving their market

reporting, senior managers at Asia’s financial

services firms will need to:

1 Accounting for change, a survey of 20 banks by PricewaterhouseCoopers, September �006 and Reporting under the new regime: A survey of 2005 IFRS insurance annual reports, July 2006.


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Take a holistic view. Market reporting

should not be left to the finance department

alone. In order to embed good reporting

practices, senior management and

organisational commitment is required

across multiple functions, including risk

management, finance and operations.

Of our survey respondents, 38% said they

need better integration of market reporting

functions. A centralised approach, drawing

on the efforts of a number of different

functions, is the best way to ensure

improvements. But this should be led

from the top – management must take the

opportunity to increase its involvement in

market reporting and to embed the reporting

• concept as a means of improving

performance, rather than simply reacting

to regulatory requirements.

Think beyond the silo. Processes and

functions overlap and affect each other.

Risk managers, treasurers, financial and

regulatory reporting accountants all use the

same data and face similar issues when

determining how to meet the demands of their

various stakeholders. But in many cases these

parties rarely talk to each other. A greater

awareness of how other functions are using

data should result in the organisation thinking

more as one rather than as several units.

Promoting such a culture should also help

ensure that data sources are used effectively,

•

promoting efficient and consistent reporting

to multiple stakeholders. This is a particular

challenge in Asia where matrix reporting

structures are not as common as they are

elsewhere in the world.

Develop a long-term vision for technology. Good quality market reporting to various

stakeholders requires an organisation to use

efficiently the data it has for multiple purposes.

Quick-fix solutions which meet the requirement

of one stakeholder may not provide sufficient

information for reporting to another stakeholder,

and could result in misreporting of information

as well as considerable reconciliation efforts

to ensure consistency. More advanced

organisations are using more flexible data

warehouse solutions to help them manage

their numerous data requirements. Of the

respondents to our �006 survey, 57% said

they need better IT systems if they are to

improve market reporting. This confirms the

findings of a global survey conducted in �003�

that showed that 68% of the firms moving

to adopt IFRS planned a ‘significant’ additional

investment in IT and data systems at the

global/group level as a direct result of the

move, while 59% expected significant

investment at the business unit level.

•

What steps could be taken to improve market reporting at your institution? Select up to three options.

Greater commitment from senior management 54%Greater information sharing with stakeholders �5%Better processes 57%Better IT systems 57%More qualified accounting staff 16%Better integration of market reporting functions 38%Don’t know 5%Other, please specify 1%

Source: PricewaterhouseCoopers/Economist Intelligence Unit survey, August-September �006

� Illuminating value: The business impact of IFRS, PricewaterhouseCoopers �003


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Establish clear and efficient processes. Great technology is of no use if the data being

collected by it is rubbish. Clear and efficient

processes covering the information required,

and reliable data are important. ‘Usually the

first issue is the availability of data (although)

improved procedures are required in order to

ensure that the data is collected,’ notes

Kannika Ngamsopee, Executive Vice President

and Chief Financial Officer of Siam

Commercial Bank. The difficulty in many Asian

markets is that they are changing so fast that

one indicator, such as exposure to a certain

sector, may be relevant in January but less so

in June. And monitoring exposure to a specific

sector in itself is a difficult task given the

dearth of reliable information. For example,

banks wishing to monitor their exposure to

property companies may find that they are

lending to numerous subsidiaries of the same

property groups. Financial services firms need

well-defined and automated processes in

place to aggregate the data required and to

process it. Voluminous manual processes

increase operational risk, and are bound to

result in erroneous reporting in the longer run.

• Make productivity a priority. Employing more

technically qualified accountants on the finance

team is not a longer term solution in an

environment where business volumes are

increasing. According to Stuart Scoular,

a partner with PricewaterhouseCoopers in

Jakarta, ‘Rather than increasing the number of

finance personnel, companies would be better

advised to focus on improving the overall

quality of people they have.’ Even if throwing

more accountants at problems were a solution,

it is increasingly not an option. Well-qualified

finance professionals are increasingly difficult

to come by and costly. In our survey, 40% of

respondents from developed markets cited a

lack of skilled personnel as one of the most

significant challenges to providing market-

reporting information. The only solution

is to identify innovative ways to improve

processes, leveraging the technical expertise

that is available. In other words, accounting

should not be left just to accountants.

Know what stakeholders want. Accounting

and other standards are minimum disclosure

requirements, but may not be all that

stakeholders require. Of our survey

•

•

respondents, 69% saw a strong need for

improved levels of disclosure on risk

management, while 68% saw the need for

improvements in disclosures on corporate

governance. Companies should have a good

understanding of where improved disclosures

will have the greatest impact. In order to gain

such understanding they must increase

communication with stakeholders, a process

which Singapore embarked upon

wholeheartedly following the Asian financial

crisis and from which it is now reaping the

benefits. Companies such as DBS, for

example, engage in over 300 analyst meetings

per year, giving them a good understanding of

where disclosure is most demanded – and, in

turn, allowing them to communicate clearly

with regulators. In countries such as China,

by contrast, the banks are tentatively

beginning to gain an understanding of

market expectations.


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Introduction

Indeed, in a survey conducted by the Economist

Intelligence Unit for PricewaterhouseCoopers

in August-September �006, 57% of the 1�3

Asia-headquartered financial services firms

responding ranked market reporting for firms

in their sector as very important.

What is driving this enhanced awareness? There

are a number of factors. First among them is

pressure from national regulatory authorities.

But also at play is globalisation. This is bringing

greater acceptance of international best practice,

particularly as the sector becomes increasingly

cross-border and Asian firms seek to operate

or to raise capital in other markets. Finally,

but not least importantly, is increasing mergers

and acquisitions (M&A) activity in the financial

services sector – to attract the attention

of investors, financial services firms must

meet certain standards of financial disclosure

and competency.

Our survey questions on the incentives for

good market reporting and the main drivers of

enhanced awareness of market reporting pointed

to a split between developed markets (defined

as those with more developed debt markets and

longer exposure to other developed markets:

Australia, Hong Kong, Japan, New Zealand and

Singapore) and emerging markets (defined here

as China, India, Indonesia, Malaysia, Pakistan,

Taiwan, Thailand and South Korea).

Rapid changes in Asia’s financial services sector in recent years have convinced financial services firms in the region of the need for improved market reporting (the reporting of financial and non-financial information to stakeholders). Developments such as Basel II – Pillar 3 and International Financial Reporting Standards (IFRS) are helping to drive this step forward.

How important is market reporting for entities in the financial sector in your location? Rate on a scale of 1 to 5, where 1 = Very important and 5 = Not important.

1 (Very important) 57%� �9%3 9%4 4%5 (Not important) 0%Don’t know 1%



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Introduction continued

A preference for guidance from regulators –

rather than the market – was suggested by

several of the emerging-markets firms

interviewed for this report, with some

interviewees pointing out that in some situations

management does not want to increase

disclosures unless it is required to do so.

Kannika Ngamsopee, Executive Vice President

and Chief Financial Officer of Siam Commercial

Bank, says that regulatory requirements are at

least as important as management commitment

in encouraging good reporting. This undoubtedly

reflects the cultural context in which companies

operate, whereby strong leadership is required to

effect change and incorporating the views of

multiple stakeholders is a concept that has not

taken root. Indeed, in some countries in Asia,

regulators play a far more decisive role in setting

expectations on accounting requirements.

There were exceptions to these trends.

Respondents in India and China, for example,

consider globalisation to be a more important

driver of change than regulatory demands.

By contrast, respondents in Japan ranked

pressure from national regulators as the most

important driver, ahead of globalisation.

Tokyo Star Bank: know thy investor

For Tokyo Star Bank, an initial public offering

in October �005 was very important in terms

of deepening senior managers’ understanding

of investor requirements and increasing their

awareness of the risks facing the bank. Kevin

Hoffman-Smith, the bank’s Chief Financial

Officer, also believes that market reporting and

product development reinforce each other since

both concern the construction of a consistent

corporate culture. This is a crucial objective

for the bank, formerly known as Tokyo Sowa,

a mid-sized bank placed under administration

by the regulators in 1999.

In Mr Hoffman-Smith’s opinion, disclosure

above the minimum required by regulators

should be met by internal reporting systems

and as such is not necessarily an incremental

cost, but good discipline. ‘Companies have

a responsibility to enhance their reporting

(above the minimum) according to the unique

risks they face,’ he says. And while he

acknowledges that it is difficult to draw the

line between what should and should not

be disclosed, feedback is key: ‘If we hear the

same question in 50 out of 60 meetings, then

we should be responding to that question.’

In his view, good reporting starts internally

with good corporate governance. Surprisingly,

specific areas of corporate governance-related

disclosures, such as executive remuneration,

are viewed by survey respondents overall as

less in need of improvement than corporate

governance in general. Respondents seem

to indicate that they only need to know enough

to be reassured that there is an effective

management system in place. In Japan’s

case, only 15% of respondents view corporate

governance as being an area in strong need

of improved disclosures, greater than the 13%

of respondents in India but fewer than those in

China (50%) and overall (�7%).


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The findings are borne out in further questioning

on the motivations for improved market

reporting. In emerging markets, respondents saw

shareholders, bondholders, regulators and

financial intermediaries as their key stakeholders

and saw improved market reporting as a means

to attract foreign investment, improve their

relationships with regulators and gain access to

capital markets (see tables on pages 10 and 11).

In developed markets, financial services firms

were more focused on shareholders and

bondholders and saw improved market reporting

as a means of increasing their share price,

improving their attractiveness to foreign investors

and reducing the cost of capital.

What do you consider to be the main drivers of the enhanced awareness of market reporting in Asia’s financial sector?

Asia headquartered, assets over US$10bn

Respondents from:

%, up to three options selected

Pressure from national

regulatory authorities

Pressure from international regulatory authorities

Globalisation bringing greater

awareness of international best practice

Financial services sector

becoming increasingly cross-border

Requirement to measure up to international

standards due to cross-border

expansion

Requirement to measure up to international standards in

order to attract int’l investors

More developed markets 46 41 51 41 �4 3�

Japan 54 31 4� 38 19 �7

Emerging markets 57 34 5� 47 33 �8

China 50 17 58 50 33 33

India 5� 30 61 35 30 35

Overall 5� 38 51 44 �8 30



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Among respondents from developed markets

bondholders were considered to be almost as

important as shareholders, whereas the gap

between the two categories among respondents

from emerging markets was 30 percentage

points. This suggests that the greater depth

and breadth of bond markets in the developed

markets is an important factor driving market

reporting standards. According to Daniel Wan,

Group Chief Financial Officer of the Bank of East

Asia, analysts or fund managers do not

necessarily read annual reports from cover-to-

cover. In contrast, bondholders ‘have to

understand every detail…and read every last

page of the prospectus’.

Financial services firms believe that regulatory

pressures will require them to continue to

increase the level of disclosure – 55% of our

survey respondents believe that regulatory

pressure for greater disclosure will increase

substantially over the next three years.

How important are the following incentives to market reporting?

Asia-headquartered, assets over US$10bn

Respondents* from:

Mean score‡

Increased share price

Improved attractiveness to foreign investors

Better communication with regulators

Better communication with customers and staff

Better comparability across institutions

More developed markets# 1.84 1.95 �.17 �.�5 �.�3

Japan 1.65 �.15 �.35 1.96 �.19

Emerging markets# �.03 1.79 1.86 �.1� �.14

China �.5 �.17 �.17 �.67 �.08

India 1.87 1.5� 1.7 1.83 �.��

Overall 1.93 1.88 �.0� �.19 �.19


‡ 1 = Very important

* Number of respondents, China (1�), India (�3), Japan (�6), Emerging (58), More developed (63), Overall (1�3).

# More developed defined as Australia, Hong Kong, Japan, New Zealand, Singapore; Emerging included responses from China, India, Indonesia, Korea, Malaysia, Pakistan, Sri Lanka, Taiwan and Thailand.


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What do Asian financial services firms consider to

be the most important factors in effective market

reporting? Of our survey respondents, 77% cited

common accounting standards as important to

effective market reporting while 74% cited good

corporate governance. Financial services firms

in Asia believe that the implementation of

International Financial Reporting Standards (IFRS)

will lead to better market reporting, specifically to

better comparability and more transparent

disclosures. This confirms findings of a global

survey conducted in �0033, in which 63% of

respondents believed that institutions that adopt

IFRS will be more transparent in their reporting,

and 47% believed that those who adopt the

standards will have a competitive advantage over

those who do not. Respondents to the �003

survey clearly saw the implications of better

transparency for fund raising – 66% believed that

adoption of IFRS would make it easier to raise

capital globally, while 60% thought it would be

easier to communicate results to investors

and 65% thought it would improve corporate

governance and transparency. As we discuss

below, however, such standards may not be

particularly relevant to situations in some

emerging markets.

In your opinion, how important is market reporting information to the various stakeholders of a financial-sector entity? Rate on a scale of 1 to 5, where 1 = Very important and 5 = Not important.

1 2 3 4 5 Don’t knowShareholders 68% �5% 4% �% 1% 0%Bondholders 51% 35% 11% �% �% 0%Customers �6% 34% 30% 6% 3% 0%Tax authorities �9% 34% �4% 10% �% 1%Regulatory authorities 43% 39% 14% �% �% 0%Non-governmental organisations 4% 19% 43% �1% 7% 6%The public 1�% 3�% 35% 1�% 8% 1%The government 19% 37% �8% 9% 6% 1%Financial intermediaries 37% 39% 16% 5% 1% �%


IFRS in Asia

Countries which have already substantially adopted International Financial Reporting Standards

(IFRS) include Australia, Hong Kong, Malaysia, Pakistan, the Philippines, Singapore and

Sri Lanka. Countries which have yet to set firm dates for full convergence include Japan, India,

South Korea and Taiwan. Meanwhile, China plans convergence with limited exceptions from

January 1 �007. Indonesia, Thailand and Vietnam are adopting certain IFRS provisions but not

planning full convergence while Bangladesh is adopting IFRS on a case-by-case basis.


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While there is a belief in the West that Asian

financial services firms are a long way behind

‘international practice’, Asian firms have a

different view. According to our survey, Asian

financial services firms generally feel they have

done well in educating themselves on the

importance of good market reporting.

Clearly, there has been progress in meeting

international standards. One high-profile example

is the overseas listing of three of China’s top

four banks and that country’s general move

towards IFRS.

Interestingly, however, financial services firms in

emerging markets are more confident regarding

their knowledge of market reporting than their

counterparts in developed markets. In India,

for example, 43% of respondents said that all

of their business units were well informed about

the importance of market reporting. No Japanese

or Chinese respondents made this claim. The

majority of respondents from China say ‘Most

business units are well informed,’ while more

than two-thirds from Japan say ‘Some business

units are well informed.’

How do the current reporting standards of Asian financial services firms compare with international practices? If Asian firms are not yet on par, when will they be? What do they need to do to reach international standards?

China Construction Bank: constructive disclosures

Given the huge growth that some financial services firms operating in emerging markets are

experiencing, it is not surprising that many are focusing their efforts on internal, rather than

external, reporting.

At the same time, external reporting is viewed as an increasingly important driver of internal

discipline. ’Increasing transparency of information disclosure is not only a challenge but also an

opportunity for Chinese banks,’ says Pang Xiu Sheng, Chief Financial Officer of China Construction

Bank (CCB), the first mainland incorporated company to have its Hong Kong shares added to the

former colony’s Hang Seng Index. ‘CCB regards information disclosure as an effective method to

demonstrate core competitiveness after listing.’ Mr Pang notes that governance structures are

now becoming more important as a source of competitive advantage in China in the wake of

several high-profile scandals involving corporate executives, including two at CCB. Indeed, the

prospect of increased competition following WTO-mandated market opening at the end of this

year is encouraging China’s banks to start thinking like developed market operators.

Mr Pang says that parts of the bank’s financial reporting system are far from meeting international

standards. But they are working to bridge the gap. Help in this regard has come from the bank’s

strategic partners such as Bank of America. According to Mr Pang, Bank of America and CCB

are currently collaborating on dozens of projects. These include seven projects aimed at

improving information technology systems and four aimed at promoting better risk management,

all of which will indirectly improve the banks’ market-reporting capabilities.


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How does Asia compare? continued

But opinions diverge on just when market

reporting among Asian financial services firms

will be on a par with international best practice.

A significant proportion (41%) of respondents

in developed markets say that market reporting

in Asia will not be on a par with international best

practice until �015 or later. Among respondents

in emerging markets, by contrast, 59% of

respondents feel that targets will be met by �010,

while 38% feel that international standards will

not be reached until �015 or later. The divergence

of views perhaps comes as no surprise since

financial services firms in more developed

markets are more aware of the costs and volume

of work involved in investing in improvements in

market reporting, having been through the

process of implementing IFRS. However, for

emerging markets this creates interesting

challenges, since financial services firms in

these countries are more likely to be seeking

new or increased funding from shareholders

and bondholders as they expand. The doubts

expressed in developed markets echo the results

of a survey of banks’ �005 IFRS annual reports4

conducted by PricewaterhouseCoopers, which

found that the implementation of IFRS has

proved to be a real challenge. At any rate,

international best practice is a moving target.

In the US, for example, consensus on the

approaches, conditions and timing of Basel II

implementation has yet to be reached.

Implementation of the accord in other developed

countries, however, is set for �007 and �008

for banks to adopt the simple and intermediate

(F-IRB) and advanced (A-IRB) internal risk-based

approaches respectively.

4 Accounting for change, a survey of �0 banks by PricewaterhouseCoopers, September �006


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What do you think are the most significant challenges to providing market-reporting information?


Respondents from:

%, up to three options

Unreliability of info

Unavailability of info

Lack of procedures to

provide

Lack of management

interest

Lack of skilled

personnelVolume of work Cost

More developed markets �4 �4 �7 18 40 40 40

Japan 8 8 4 15 46 58 54

Emerging markets 40 34 43 34 �1 �6 �6

China 67 �5 58 33 17 �5 17

India �� 35 48 �6 30 35 30

Overall 33 30 35 �5 30 33 33


Views on the ease with which good market-reporting information can be produced vary across the region. Though 40% believe it is easy to provide such information, only 11% feel it is ‘very easy’. This compares with more bullish emerging markets firms, 17% of whom felt it was ‘very easy’.

In interviews conducted for this report, however,

it became clear that this view applied only to

existing standards for disclosure and that

increased disclosures would be far more difficult.

This attitude was based on perceived difficulties

in gathering accurate information but also a

reluctance to disclose competitive information.

Indeed, while managers would be happy to

provide additional reporting to their seniors, they

would be reluctant to release it for public scrutiny.

Whilst most financial services firms surveyed

believe that producing good quality financial

information is generally ‘easy’, they recognise

that there are still a number of challenges in

doing so. In more developed markets, increasing

volumes of transactions as well as cost pressures

were deemed the biggest challenges to providing

market reporting information. Financial services

firms in these markets historically have had lower

cost-income ratios than their international

counterparts based on lower labour costs.

However, for many of these firms costs are rising

as firms need to invest more in the areas of

compliance, risk management and IT. Add to

this a scarcity of human capital, increasing

sophistication of products and higher transaction

volumes, and financial services firms are facing

little choice but to seek ways to improve

performance through automation, to reduce

costs and to lower operational risk.


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Easy – for now continued

DBS branches out

Singapore’s largest bank, DBS, has emerged

as a regional player over the past decade.

It has done this by making various overseas

acquisitions, and by leveraging its base of

high-quality assets – rooted in lending to

government-linked corporations that rarely

(if ever) default, self-liquidating trade-financing,

and Singapore’s stable mortgage market.

The bank’s strategy is encapsulated in its

slogan: ‘Born and bred in Asia.’ It aims to

consolidate its position as one of Asia’s leading

financial services providers. Expansion

overseas, however, will undoubtedly increase

its exposure to operational risk. The latter is

not easy to track since ‘You don’t know the

extent of operational risk until something bad

happens,’ says Jeanette Wong, the bank’s

Group Chief Financial Officer.

To mitigate that risk, DBS tries to pull together

all available risk data from different operating

units. According to Ms Wong, the ‘most basic

challenge of Basel II relates to data integrity

and the connectivity of data across locations’.

This is easy to manage on a stand-alone branch

or subsidiary basis, but pulling this information

together in real-time, across the whole group,

is a challenge.

Another challenge is to ‘transfer a large part of

risk monitoring to the level where risk is best

monitored’, says Ms Wong. DBS is attempting

to ensure that risk monitoring is both pushed

down to the lowest level and also pulled up to

the highest level in order to get an overall risk

picture. For example, credit officers accompany

marketing managers on customer visits;

responsibility for credit monitoring lies on the

front line. Not only is it necessary to ensure that

credit and marketing people know their

customers well, but also that there are enough

analytics around a credit portfolio so that risks

are monitored holistically. From a more macro

point of view, says Ms Wong, ‘A build-up of

provisions in a certain industry or with a certain

category of customers might lead us to ask, are

we making the wrong decisions on this

industry? Or with this group of customers?’

The first two challenges relate to data and

their use. The third challenge is regulatory –

Ms Wong notes that the Basel II rules give

individual regulators a lot of scope in terms of

application. A multi-locational bank therefore

needs to ensure that the regulators are fairly

consistent in their rules to make Basel II easy

to implement consistently across locations.

The fundamental solution is to make sure

internally there is a clear understanding of who

is responsible and accountable for credit risk

management end to end. At DBS, according to

Ms Wong, ‘The final say on whether to lend or

not may rest with the credit guys, but the

marketing people are equally responsible for

decisions on on-boarding the credit and risk

monitoring.’ Elsewhere in Asia, a cultural

emphasis on preserving relationships can make

it difficult to refuse loans to valued customers,

even when they propose to expand in

overheated sectors.

In emerging markets, where labour costs

are lower, financial services firms struggle in

different areas. They are often challenged by

a lack of procedures on how information should

be aggregated or produced, as well as data

quality issues.


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What can be done to improve this situation? Financial services firms across Asia believe that better processes are key to improving the quality of market reporting.

5 Listing prospectuses of the banks

More than half of our survey respondents cited

greater management commitment as being vital

in driving improvements in market reporting. This

is particularly true in emerging markets, where

middle managers accounted for a greater

proportion of survey respondents.

Senior management commitment is essential for

promoting a culture of disclosure and increased

awareness across the company – from credit to

IT and finance. Indeed, it is people that make

processes work. Sarjit Singh, an insurance

specialist with PricewaterhouseCoopers in

Singapore and author of Rising to the challenge –

an analysis of IFRS annual reports in Asia’s

insurance sector, states that, ‘the one

consistency’ we found was that most (of the

firms analysed) worked outside normal operating

systems to implement IFRS.’

The upside of waiting for the rest of the world to

adopt new standards first is that companies can

learn from the mistakes of others. The drawback

is that some firms wait too long, leaving little time

when implementation is finally made mandatory.

This is worrying. By working outside normal

operating systems, firms leave themselves

exposed to data loss. Staff turnover may result in

the process being just as painful in the second

and third years as it was in the first. As Asian

firms draw closer to international best practice,

they need to start thinking of how they will

embed processes and adapt to changes in

reporting requirements. As Mr Singh puts it, they

need to think about ‘sustainable reporting rather

than quick fixes’.

Financial services firms across the region, but

particularly in developed markets, believe that

greater IT investment is also required. Data

collation and compatibility problems are common

in Asia, where many markets are still developing

and there are few established indicators. Of our

respondents, 57% (refer to graph on page 17)

said improvement in this area would require

better IT systems. As pointed out by Mr Singh,

these should take account of likely future

regulatory, demographic and economic changes.

Interestingly, few of the respondents felt that

hiring more qualified accounting staff would help

to improve market reporting. Even now, there is a

wider range of practices between players in the

same market than between players in different

markets, when it comes to the efficiency of the

accounting and finance function. In China, for

example, ICBC had 90,570 staff employed in

finance and accounting at the time of its listing,

compared with 38,047 for China Construction

Bank and 1�,60� for Bank of China5.


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Commitment, culture and technology continued

What steps could be taken to improve market reporting at your institution?


Respondents from:

%, up to three options

Greater senior management commitment Better processes Better IT systems

Better integration of functions

Greater info sharing with stakeholders

More developed markets 41 56 60 38 �1

Japan 35 58 58 35 19

Emerging markets 68 58 54 39 �8

China 64 55 55 45 18

India 65 70 65 35 4

Overall 54 57 57 38 �5



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Financial services firms in Asia believe that more could be done by analysts to use the information provided by them more effectively. Only 8.3% of all survey respondents said that analysts were making use of market-reporting information to a great extent. Analysts in developed markets say that the volume of information they receive has increased substantially in the past five years and that there is now more than enough information – although some analysts complain that ‘Regulators and companies like to discharge their reporting requirements with ‘stuffing’ rather than relevance.’

In emerging markets, analysts say that it is more

difficult to interpret information because rapid

growth and market volatility mean it is harder to

know which indicators capture the story. For

example, a decision to acquire a bank may be

made more on the economic fundamentals and

outlook for the country in which the bank is

located than the data regarding the bank itself.

Chinese banks, for example, are highly priced

relative to their Western counterparts based on

the fact that they are used as a proxy for China’s

growth. At any rate, if Chinese banks were priced

at the same price-earnings ratio as Western

banks they would be priced at a discount to

book value based on their relatively low earnings,

which brings into question the usefulness of

IFRS financial measures in emerging markets.

As one analyst remarked, ‘Companies don’t

wish for investors to completely understand the

underlying economics (of their business)

because, most of the time, investors will apply

an optimistic assessment of an issue,’ based on

the growth story of the markets they operate in.

Such attitudes increase market volatility, since

share prices are bid up (above prices justified by

the fundamentals) until the outlook turns bearish,

at which point prices tumble and the economy

comes to a standstill.

According to Sally Ng, co-head of Asian Banking

Research at UBS, the volume of information

disclosed by companies has resulted in her

workload increasing dramatically in the past five

years and she expects this trend to continue.

But quantity does not necessarily equal quality.

‘Markets are evolving rapidly with behavioural

patterns shifting significantly over short periods

of time,’ she says. ‘Even though the level of

disclosures may differ among banks, ultimately

company fundamentals are the most important.’

Despite the confidence expressed in the quality

of their market reporting, particularly by

respondents in emerging markets, financial

services firms across the region agree that

improvements need to be made in market

reporting data in Asia, although to different

degrees. In particular, they agree that there is a

strong need for improvement in the information

produced on risk management and corporate

governance: 41% of institutions in emerging

markets believe that there is a strong need for

improvement in disclosures on risk management

at their institutions compared with only �7% of

firms in developed markets. Similarly, 36% of

firms in emerging markets believe that there is a

strong need for improvement in disclosures on

corporate governance, compared with 17% in

developed markets.


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The analyst’s view continued

Do you see a need for improved levels of disclosure in these areas in your location?


Respondents from:

1 = strong need for improvement, 5 = no need for inprovement

Risk management

Corporate governance

Segment information

Corporate social responsibility

Business activities

Notes to the FS

More developed markets �.3 �.51 �.6� �.9 �.76 �.9

Japan � �.�7 �.5 �.76 �.85 �.96

Emerging markets 1.91 1.97 �.4� �.5� �.�� .4

China 1.67 1.75 �.5 3 �.17 1.83

India �.�� .43 �.59 �.78 �.43 �.78

Overall �.11 �.�4 �.51 �.7 �.48 �.65


Of the various areas in which they feel they could

make the greatest improvements, financial

services firms in Asia felt that they could provide

better information in the areas of directors’

remuneration and experience, segmented results

by business unit and capital allocations across

segments, and providing information on targets,

results and strategy by business units.

In terms of risk management, financial services

firms in emerging markets feel the greatest room

for improvement is in providing information on

risk management monitoring methods, while

those in developed markets point to additional

credit risk information.

There is also room for improvement in some of

the note disclosures in the financial statements.

For example, 60% of respondents in emerging

markets see the most need to improve levels

of disclosure on off-balance sheet exposures,

while 47% point to profit and loss segment

information, and 47% to fair value of financial

instruments. Respondents in developed markets

agreed with these assessments but also

recognised that they could be better at

disclosing more information on non-performing

loans and accounting policies.


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The trends driving the move toward international standards of market reporting – globalisation of standards, increasing cross-border M&A and tightening local regulations – are likely to gather pace in the coming years. Indeed, 55% of our survey respondents believe that regulatory pressure for greater disclosure will increase substantially over the next three years.

In order to bridge the gap between the current

perceived quality of reporting and the reality

of international best practice, financial services

firms in Asia will need to work harder to create

a corporate culture that views good reporting as

a means of improving performance, rather than

simply an obligation to regulators.

Improvement will take strong leadership from

senior management, but in some countries it will

also require ingenuity. Many markets in Asia are

still in the early stages of development and lack

established indicators. Or else they are changing

so quickly that indicators can suddenly lose

their relevance. Providing better data will require

an improvement in IT systems – yet investment

in this area must anticipate the interlinking data

requirements of Basel II, IFRS and other

reporting requirements. Technology alone is

not the answer – to improve the quality of data,

financial services firms must also improve

procedures and processes to ensure that the

relevant data is collected.

All of this will be for naught, however, if reporting

does not provide what stakeholders require.

Accounting and other standards are minimum

disclosure requirements. To understand where

improved disclosures will have the greatest

impact, financial services firms will need to

increase communication with their stakeholders.


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The Economist Intelligence Unit and PricewaterhouseCoopers conducted a special online survey of senior executives in financial services firms on the subject of Market Reporting in Asia’s financial sector. Over 1�3 executives in financial institutions in Asia participated in the survey, which was conducted during August and September �006. Our thanks are due to all those who participated for sharing their insights with us.

Please note that totals do not always

add up to 100 because of rounding,

or because respondents could choose

more than one answer.

1. How important is market reporting for entities in the financial sector in your location? Rate on a scale of 1 to 5, where 1 = Very important and 5 = Not important.

1 (Very important) 57%� �9%3 9%4 4%5 (Not important) 0%Don’t know 1%

2. In your opinion, how important are the following incentives to good market reporting? Rate on a scale of 1 to 5, where 1 = Very important and 5 = Not important.

Don’t 1 2 3 4 5 knowReduced cost of capital 3�% 36% �0% 9% 3% 1%Increased share price 37% 41% 14% 6% 1% 1%Improved attractiveness to foreign investors 37% 44% 16% �% �% 0%Access to alternative capital markets �8% 39% �1% 9% �% �%Better public relations �3% 46% �4% 5% 1% �%Better comparability across institutions 18% 5�% �4% 4% �% 0%Better communication with regulators 31% 41% �3% 5% 0% 0%Better communication with customers and staff ��% 47% �4% 3% 3% 0%


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Appendix: Survey results continued

3. In your opinion, how important is market-reporting information to the various stakeholders of a financial-sector entity? Rate on a scale of 1 to 5, where 1 = Very important and 5 = Not important.

Don’t 1 2 3 4 5 knowShareholders 68% �5% 4% �% 1% 0%Bondholders 51% 35% 11% �% �% 0%Customers �6% 34% 30% 6% 3% 0%Tax authorities �9% 34% �4% 10% �% 1%Regulatory authorities 43% 39% 14% �% �% 0%Non-governmental organisations 4% 19% 43% �1% 7% 6%The public 1�% 3�% 35% 1�% 8% 1%The government 19% 37% �8% 9% 6% 1%Financial intermediaries 37% 39% 16% 5% 1% �%

4. Which of the following are most important in contributing to effective market reporting? Select up to three options.

Converged or common accounting standards 77%Good corporate governance 74%Qualified and reputable auditors 40%Qualified and reputable analysts 3�%Informed financial journalists 1�%Strong local regulator 37%General users who understand the information 10%Don’t know 1%Other, please specify 1%

5. How do you view your institution’s level of knowledge about the importance of market reporting?

All business units are well-informed �0%Most business units are well-informed 33%Some business units are well-informed 34%Only the finance/compliance parts of the organisation are well-informed 11%No business units are well-informed 1%Don’t know 1%


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6. What do you consider to be the main drivers of the enhanced awareness of market reporting in Asia’s financial services sector? Select up to three options.

Pressure from national regulatory authorities 5�%Pressure from international regulatory authorities 38%Globalisation bringing greater acceptance of international best practice 51%Financial services sector becoming increasingly cross-border 44%Requirement to measure up to certain international standards of financial disclosure due to cross-border expansion �8%Requirement to measure up to certain international standards of financial disclosure in order to attract international investors 30%Encouragement to measure up to certain international standards of financial disclosure in order to attract international investors 17%Pressure from analysts 8%Pressure from other stakeholders 9%Don’t know �%Other, please specify 0%

7. In your opinion, is the regulatory pressure for greater disclosure on institutions in your location likely to increase or decrease over the next three years?

Increase substantially 54%Increase slightly 39%Stay the same 4%Decrease slightly �%Decrease substantially 0%Don’t know 1%

8. Do you think that the adoption of IFRS or equivalent in your location will enhance market reporting?

Yes 74%No 8%Don’t know 18%

9. What do you see as the key benefits of adopting IFRS or equivalent? Select all that apply.

Better comparability of companies 68%More transparent disclosures 7�%Easier access to international capital markets 43%Increased reliability of financial reporting 55%None – I do not see any significant benefits 6%Don’t know �%Other, please specify �%

10. By when do you think market reporting for entities in the financial sector in Asia will be on a par with international best practice?

By �008 1�%By �010 36%By �015 �9%By �0�0 10%After �0�0 �%Never 0%Don’t know 11%



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11. To what extent do you believe market analysts are using market-reporting information effectively? Rate on a scale of 1 to 5, where 1 = To a great extent and 5 = Not at all.

1 (To a great extent) 8%� 51%3 33%4 �%5 (Not at all) 1%Don’t know 5%

12. In your opinion, how effective is market reporting at your institution? Rate on a scale of 1 to 5, where 1 = Very effective and 5 = Very ineffective.

1 (Very effective) 17%� 46%3 �5%4 9%5 (Very ineffective) 1%Don’t know �%

13. How easy is it for your institution to provide market-reporting information to stakeholders?

Very easy 15%Easy 37%Somewhat easy 31%Difficult 11%Very difficult �%Don’t know 3%

14. What do you think are the most significant challenges to providing market-reporting information? Select up to three options.

Unreliability of information 33%Unavailability of information 30%Lack of procedures providing this information 35%Lack of management interest �5%Lack of personnel skilled at collating and analysing the information 30%Volume of work 33%Cost 33%Lack of guidance as to what is needed (e.g., from regulatory authorities or trade bodies) �0%Lack of sustainable processes 15%Inability to collate data in a reasonable timeframe 15%Don’t know �%Other, please specify 1%

15. What steps could be taken to improve market reporting at your institution? Select up to three options.

Greater commitment from senior management 54%Greater information sharing with stakeholders �5%Better processes 57%Better IT systems 57%More qualified accounting staff 16%Better integration of market-reporting functions 38%Don’t know 5%Other, please specify 1%


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16. Do you see a need for improved levels of disclosure in these areas in your location? Rate on a scale of 1 to 5, where 1 = Strong need for improvement and 5 = No need for improvement.

Don’t 1 2 3 4 5 knowRisk management 34% 35% �1% 5% 5% 0%Corporate governance �7% 41% �0% 8% 4% 1%Segment information 14% 39% 35% 8% 3% 1%Corporate social responsibility 1�% 36% 30% 11% 10% 0%Business activities 15% 41% 30% 11% 4% 0%Notes to the financial statements 16% 31% 3�% 15% 4% �%

17. Do you see a need for improved levels of disclosure in these areas of corporate governance in your location? Rate on a scale of 1 to 5, where 1 = Strong need for improvement and 5 = No need for improvement.

Don’t 1 2 3 4 5 knowBoard committees and their membership �4% �7% �1% 15% 10% 3%Directors’ attendance at Board and Committee meetings 17% 3�% �5% 1�% 11% �%Directors’ qualifications and experience �4% �8% �4% 1�% 8% 3%Directors’ compensation and benefits 18% �9% 3�% 10% 8% 3%Remuneration of executives and an explanation of the basis of remuneration �1% 33% �8% 7% 7% 3%



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18. Do you see a need for improved levels of disclosure in these areas of segment information in your location? Rate on a scale of 1 to 5, where 1 = Strong need for improvement and 5 = No need for improvement.

Don’t 1 2 3 4 5 knowResults by geographical region 1�% 44% �5% 11% 6% �%Results by business unit �1% 40% �6% 7% 5% 1%Results of material subsidiaries 1�% 38% 34% 8% 6% �%More detailed breakdown of results in each segment 16% 41% �8% 11% 3% 1%Allocation of capital by segment �3% 39% �4% 9% 3% �%

19. Do you see a need for improved levels of disclosure in these areas of social responsibility in your location? Rate on a scale of 1 to 5, where 1 = Strong need for improvement and 5 = No need for improvement.

Don’t 1 2 3 4 5 knowActivities to promote charitable and social causes 7% 31% 37% 11% 15% 0%Environmental/climate impact �1% �9% �7% 10% 13% 0%Level of tax paid 11% �7% �9% 13% 16% 4%Human resource policies and actions 16% 35% �9% 11% 7% �%

20. Do you see a need for improved levels of disclosure in these areas of business activity in your location? Rate on a scale of 1 to 5, where 1 = Strong need for improvement and 5 = No need for improvement.

Don’t 1 2 3 4 5 knowDescription of business unit activities 16% 39% �5% 11% 7% �%Results by business unit 18% 45% ��% 8% 5% �%Strategy 19% 37% 3�% 9% 3% 1%Key financial targets by business unit 18% 38% 31% 7% 7% 0%Information on customer base 13% 34% 3�% 10% 9% �%


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21. In which of the following areas of risk management do you see most need for improved levels of disclosure in your location? Select up to three options.

Risk management organisation 31%Risk management monitoring methods 54%Credit risk exposures (e.g., by industry, geography, credit rating) 5�%Market risk exposures (e.g., VaR levels) 41%Interest rate risk exposures (e.g., balance sheet broken down by interest rate re-pricing gap) �9%Operational risk data 46%Risk arising from insurance contracts 9%Claims development information 5%Don’t know 1%Other, please specify 1%

22. Within the notes to the financial statements, in which of the following areas do you see most need for improved levels of disclosure in your location? Select up to five options.

Accounting policies 33%Breakdown of income by source 47%Breakdown of costs by type 35%Breakdown of assets and liabilities 31%Fair value of financial instruments 45%Non-performing loans 37%Movements on provisions and reserves �0%Off-balance sheet exposures 56%Pension liabilities 14%Tax risks/contingencies 14%Reconciliation to US GAAP or IFRS 15%Information on shareholders 11%Related party transactions �1%Contingent liabilities �3%Don’t know 1%Other, please specify �%


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To which of the following subsectors does your organisation belong?

Diversified financial group �3%Banking 56%Securities broking �%Insurance 7%Investment management and real estate 7%Other, please specify 6%

What are your organisation’s global assets in US dollars?

Under $1bn 0%$1bn to $10bn 0%$10bn to $�5bn �4%$�5bn to $50bn 18%$50bn to $100bn 1�%$100bn to $150bn 8%$150bn to $�00bn 7%$�00bn to $�50bn 8%Over $�50bn �4%

Which of the following best describes your title?

Board member 10%CEO/President/Managing Director 4%CFO/Treasurer/Comptroller 10%CIO/Technology Director 1%Other C-level executive 5%SVP/VP/Director 15%Head of Business Unit 8%Head of Department 7%Manager �8%Other 1�%

Results of country breakdowns

Japan �1%India 19%Australia 11%China 10%Singapore 10%Hong Kong 8%Malaysia 4%Indonesia 3%Pakistan 3%Other 11%



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�9

Contacts

Christophe Cadiou

81 3 6�66 5699

[email protected]

Simon Copley

85� ��89 �988

[email protected]

Addison Everett

86 10 6533 �345

[email protected]

Chen Voon Hoe

65 6�36 3313

[email protected]

Salman Hussain

9� � 1�4� 9�61

[email protected]

Kevin Kab Jae Lee

8� �709 063�

[email protected]

Jimmy Leung

85� ��89 184�

[email protected]

Tom Ling

86 10 6533 �381

[email protected]

Karen Loon

65 6�36 30�1

[email protected]

John Masters

61 � 8�86 7�65

[email protected]

Chris Matten

65 6�36 3878

[email protected]

Dominic Nixon

65 6�36 3188

[email protected]

Phil Rivett

44 �0 7�1� 4686

[email protected]

Chanita Saicheua

66 �344 1179

[email protected]

Stuart Scoular

6� �1 5�89 1�13

[email protected]

Sarjit Singh

65 6�36 3�8�

[email protected]

Nigel Vooght

44 �0 7�13 3960

[email protected]

Hajime Yasui

81 90 6045 6835

[email protected]

Peter Yu

85� ��89 31��

[email protected]

PricewaterhouseCoopers1 Editorial Board

1 PricewaterhouseCoopers’ refers to the global network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independence legal entity.


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PricewaterhouseCoopers1 Global Financial Services Leadership Team

Jeremy Scott

Chairman, Global Financial

Services Leadership Team

44 �0 7804 �304

[email protected]

Benoît Catherine

33 1 56 57 1� 38

[email protected]

Javier Casas Rúa

54 11 4850 4504

[email protected]

Diana L Chant

1 416 365 8�07

[email protected]

Rahoul Chowdry

61 � 8�66 �741

[email protected]

Ron Collard

44 �0 7�1� 68�7

[email protected]

Richard Collier

44 �0 7�1� 3395

[email protected]

Ian Dilks

44 �0 7�1� 4658

[email protected]

James Flanagan

1 646 471 5��0

[email protected]

David Newton

44 �0 7804 �039

[email protected]

Dominic Nixon

65 6�36 3188

[email protected]

Rick Richardson

1 646 471 9��1

[email protected]

Phil Rivett

44 �0 7�1� 4686

[email protected]

Marc Saluzzi

35� 494848 �009

[email protected]

Takashi Sasaki

81 90 6490 9333

[email protected]

John S Scheid

1 646 471 5350

[email protected]

Nigel J Vooght

44 �0 7�13 3960

[email protected]

Akira Yamate

81 90 1816 7737

[email protected]

1 PricewaterhouseCoopers’ refers to the global network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independence legal entity.

Contacts continued


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Contacts continued

Economist Intelligence Unit (EIU)

6001 Central Plaza, 18 Harbour Rd, Hong Kong

Laurel West

85� �585 3853

[email protected]

Oliver Jones

85� 9741 4387

[email protected]


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The Financial Services Briefing Programme is produced by experts in their particular field at PricewaterhouseCoopers, to address important issues affecting the financial services industry. It is not intended to provide specific advice on any matter, not is it intended to be comprehensive. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. If specific advice is required, or if you wish to receive further information on any matters referred to in this briefing, please speak to your usual contact at PricewaterhouseCoopers or those listed in this publication.

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Economic Capital: At the heart of managing risk and value – March �00�

Taming uncertainty: Risk management for the entire enterprise – July �00�

Risk Management Survey – A follow-up to Taming uncertainty: Risk management for the entire enterprise – November �00�

The trust challenge: How the management of financial institutions can lead the rebuilding of public confidence – December �00�

Illuminating value: The business impact of IFRS – April �003

Compliance: A gap at the heart of risk management – July �003

Focus on restructuring: The drivers shaping the financial services sector – December �003

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Governance: From compliance to strategic advantage – April �004

Uncertainty tamed? The evolution of risk management in the financial services industry – August �004

From aspiration to achievement: Improving performance in the financial services industry – December �004

Focus on growth: Striking the right value balance within financial services – May �005

Offshoring in the financial services industry: Risks and rewards – September �005

Effective capital management: Economic capital as an industry standard? – December �005

Winning the battle for growth: Building the customer-centric financial institution – May �006

Winning the battle for growth: Building the customer-centric financial institution – Focus on Asia – May �006

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market reporting in asia's financial sector: bridging the gap

Documents