The combination of challenging market conditions as well as increased regulatory requirements and restrictions has raised
concerns about the banking sector’s longer-term profitability and growth prospects in Asia Pacific. The Asia Pacific regional economy continued to experience a slowdown in the midst of a volatile global environment. Global trade, while improving, remains historically weak and as a consequence, economic growth amongst many of the region’s export driven economies is decelerating. While signs of slowdown have also emerged in growth markets, overall economic activity has remained relatively robust.